Big Banks Say More Short Sales Are on the Way

In an interesting article written by Diana Olick at CNBC on June 11, 2010, she shares a recent interview with some of the big shots at Bank of America who state that there are more short sales on they way. The major lending institutions, according to the article, have now embraced the short sale.

Many folks may think that this is because of the incentives that these lending institutions will receive from the government through the HAFA Program.

As stated in the article, it is more than just the short sale incentives from the government that are causing the major lending institutions to join the short sale bandwagon.

According to one of the executives at Bank of America, Bank of America "understand[s] the reality; a large number of homeowners won't meet the eligibility for the HAMP (the government's Home Affordable Modification) program." This same executive also noted the sheer volume of borrowers now coming through the short sale process. He expects to see far more.

"The big difference, he says, is that Bank of America, as well as some other big banks, are changing the model from reactive to proactive. In other words, instead of waiting for a borrower or real estate agent to approach the bank with an offer for a short sale, they are using a ‘cooperative approach', with homeowner, Realtor® and servicer on behalf of investor, working to move that property through the process. All three of the interested parties holding everything together," the executive explains.

Short sale aficionados are probably not surprised to hear this news. Just consider it food for thought.

To read the entire article, click here.

Broker, Realtor®
DRE #01324959
Broadpoint Properties, Inc
San Diego County Short Sale Specialists
Short Sale Expeditor® 

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