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Are Short Sales Getting Easier?

By
Real Estate Agent with Royal Shell Real Estate

I saw this in the paper today.  Will a short sale be easier now?  What do you think?  

 

Bank of America revises short sale policy

NEW YORK – May 19, 2009 – Bank of America, one of the country’s largest mortgage lenders, says it is loosening its policies on short sales in response to the U.S. Treasury Department’s announcement last week that it would increase incentives for lenders to work out short sale deals.

The government’s plan is a boon to banks, says David Sunline, BofA’s real estate management executive, because it provides guidance when there are multiple liens, a potentially litigious issue for lenders.

In the past, the bank followed Fannie Mae’s policy of giving second lien holders about 10 percent of the second mortgage balance in a short sale. Now when it holds the second lien, BofA will accept 5 percent of the net proceeds of the short sale, Sunline says. When it is the first lien holder, it will offer 5 percent to the holder of the second lien.

Sunline says homeowners considering short sales should contact the bank within five days of getting an offer on the home and expect its cooperation as long as the offer is within the range of other sales in the area and the borrower can demonstrate financial hardship.

Source: The New York Times, Bob Tedeschi (05/15/2009)

 

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Comments(3)

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Steven L. Smith
King of the House Home Inspection, Inc. - Bellingham, WA
Bellingham WA Home Inspector

Interesting information. I wish that the short sales would get less complicated.

May 20, 2009 03:35 AM
Gene Riemenschneider
Home Point Real Estate - Brentwood, CA
Turning Houses into Homes

I hope they ease up.  It is in everyones best interest.

May 20, 2009 03:53 AM
Robert Hammerstein
Christie's International Real Estate - Hillsdale, NJ
Bergen County NJ Real Estate

Heather - All banks tend to react differently to short sales I've found. Some are easy to deal with others aren't. I think it's going to be up to the individual banks to work together to help everyone get these deals done in an easier fashion. It would be nice wouldn't it? 

May 21, 2009 01:34 PM