Short Sales And Modification Improvements

By
Real Estate Agent with Re/Max Premier Realty, Inc.

It could be possible that things are starting to change for the better in short sales and modifications for distressed homeonwers. Yesterday I received a couple of phone calls that indicated promise on the horizon for borrowers from Bank of America.

The first call was from a past client that lives in California and has an investment property in Ocala, FLorida. He had his home on the market as a short sale, but Bank of America just offered him a modification that cut his payment in half. PERMANTLY.  His rental home in Ocala now positve cash flows and it is one less property listed in an oversupplied market. His credit doesn't get dinged and the tenant doesn't have to worry about having to move.

The second call was from a representative from Bank of America stating that they will now be using REOtrans for their short sale processing. They have been familiar to me as a third party company for bank owned properties and now they are going to handle Bank of America short sales. I was not clear if this was all the short sales through Bank of AMerica or just some of them.

It has been tough, if not impossible  with Bank of America since they absorbed all the Countrywide loans on getting short sales approved, so maybe this will be the solution we've all been waiting for. They already seem to be more efficient with the strategy that we communicate by email and we can check the progress along with the seller at any tiime by logging in.

As a Short sale Specialist in Ocala, having dealt with Bank Of America before and after the Countrywide absorption, it must have been like a tsunami for the mitigators at that bank. If Reotrans can solve this problem, it's really going to make a huge dent in the real estate market in Ocala, and probably around the country.

Some short sale specialists had already stopped representing sellers that had Bank of America or former Countrywide borrowers because of the lack of response. My suggestion today is if a borrower has been turned down for a modification, reapply today. You may get a diffierent answer from your lender because of improvements in their system.

If you or your Realtor gave up on a short sale, try again. Be sure and use a Realtor with a proven track record on getting short sales approved and closed. Here in Ocala, we still have many misconceptions out floating around.  You wouldn't believe the stories I hear from other agents and sellers that were given bad information.

One cliche' that sticks with me in the short sale specialist industry. "The only thing constant is change." ( I hope I said that right.)

Hava a great day and Happy Short Selling!!

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Certified Distressed Property Expert
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Rainmaker
564,359
Chris Olsen
Olsen Ziegler Realty - Cleveland, OH
Broker Owner Cleveland Ohio Real Estate

Hi Nancy -- For borrowers sake as well as the rest of the industry since boa is so huge, I hope it's true and they improve their absymal reputation.  Modifications are still a pittance of where they should be but I applaud any effort to improve.  Thanks for the good news!

Oct 24, 2009 01:41 AM #14
Rainmaker
245,259
Joyce Thomas
The Thomas Group Brokered by eXp Realty - San Tan Valley, AZ
Your Home Sold Guaranteed!

Thanks for all the info Nancy.  In this market, we all need as much information on short sales and modifications as possible.  Great post.

Oct 24, 2009 02:38 AM #15
Rainmaker
359,106
Aaron Vaughn, REALTORĀ© 512-845-4204
eXp Realty - Canyon Lake, TX
My knowledge is your power | eXp Realty

You make excellent points here ... thanks for your efforts! I think I speak for all people in all the land when I say, "We appreciate you!"

Oct 24, 2009 02:45 AM #16
Rainer
149,377
Paul Warkow
Paul Warkow-D.G. Weber Law Associates - Hauppauge, NY

I was redirected to the reotrans.com web site as well.  To me, it is worthless.   I have not seen any improvement with B of A yet.

Oct 24, 2009 02:49 AM #17
Rainer
13,856
Pili Meyer
Coldwell Banker Uptown Realty - Port Angeles, WA

Thanks for this info. I had heard this from another source this past week but you are more credible. My hopes are high that BofA will start putting people higher on their priority list. It has seemed as if their balance sheet was all they cared about.

Oct 24, 2009 03:19 AM #18
Rainer
56,106
Heather Adkinson
Windermere K-2 Realty LLC www.propertiesinmoseslake.com - Moses Lake, WA
Real Estate Agent - Moses Lake

I'm hoping this is a step in the right direction but I won't hold my breath.

Oct 24, 2009 03:39 AM #19
Rainer
23,227
Nancy Deichman
Re/Max Premier Realty, Inc. - Ocala, FL
CDPE

I didn't mean to imply that you can go to the Reotrans website and get information today. I have 8 pendings with Bank Of America now. They called me yesterday on one of them and instructed me as to how to do the setup on one of them.  They have to set it up and give you a log in and you go in and register with your email address. Your seller can do the same. But they have to initiate it.

Hopefully they will be in touch soon to everyone with short sale pendings. It has to get better.

Oct 24, 2009 05:11 AM #20
Rainmaker
1,142,627
Bryant Tutas
Tutas Towne Realty, Inc and Garden Views Realty, LLC - Winter Garden, FL
Selling Florida one home at a time

Nancy, I truly hope you are right. I have several short sales with BofA right now that were submitted back in May. I am real tired of looking at those files!!! Any thing would be an improvement.

Oct 24, 2009 08:30 AM #21
Rainmaker
845,449
Barbara Altieri
Kinard Realty Group Fairfield and New Haven County CT Real Estate - Shelton, CT
REALTOR-Fairfield County CT Homes/Condos For Sale

This is true, but I understand Reotrans has been experiencing some system integration issues.  ONce the kinks are worked out, this is a step in the right direction.  Also heard Reotrans will be changing its name by year end to Equator.

Oct 24, 2009 09:12 AM #22
Ambassador
429,597
Rich Cederberg
eXp Realty - Albuquerque, NM
eXp Realty Agent Albuquerque

Nancay, Thanks for you post, we need all the positive news we can get.

Let's hope this change is indeed positive!

Oct 24, 2009 11:19 AM #23
Rainmaker
161,942
Satar Naghshineh
Satar - Amiri Property and Financial Services Corp. - Irvine, CA

"I was not clear if this was all the short sales through Bank of AMerica or just some of them."

Right now, it's certain loans and not all loans will be processed through REOTrans. Eventually it will be all loans.

Oct 24, 2009 01:53 PM #25
Ambassador
2,011,027
Christine Donovan
Donovan Blatt Realty - Costa Mesa, CA
Broker/Attorney 714-319-9751 DRE01267479 - Costa M

It is nice to hear that Bank of America may be starting to get better with their mods and short sales.

Oct 24, 2009 04:04 PM #26
Anonymous
nancy deichman

It sounds like all short sale specialists across the country have been having nightmares with Bank of America. I just read that they have 20% of the mortgage business in the U.S.  and they have 2 trillion dollars in servicing.

For the sake of all those sellers, Realtor and buyers of short sales, we better all hope and pray that their new system works.

Oct 25, 2009 01:56 AM #27
Rainer
142,607
Robert Savage
Bakersfield Property Solutions - Bakersfield, CA
Bakersfield Short Sales, Property Management, Cash

I recently lost a short sale with Bank of America because they agreed to do a loan modification in the midst of the short sale. $300,000 all cash offer. My client got to stay in the home with a reduced payment (yea for her). I lost my commission after investing a fair amount of time (boo for me). At the end of the day she still owes a couple hundred thousand more than the house is worth. Maybe I will get another shot at it in a year or two.

Oct 25, 2009 03:54 AM #28
Anonymous
Monica Russell

I currently have two short sales with boa.  They gave me a date that they will have an answer to an offer which was Friday (about 45 days from receipt of offer).  When I called on Friday the short sale dept. stated they do not have an answer and to call back in a week.  Has anyone else been given dates in which they will have an answer and has it been on or near the date?  Is that how they usually operate. Thanks

Oct 25, 2009 04:04 AM #29
Rainer
23,227
Nancy Deichman
Re/Max Premier Realty, Inc. - Ocala, FL
CDPE

Robert, I have also 2 sales because the bank decided to offer modifications. I got them both back less than 1 year later. The sellers finally figured out they owe too much. Go figure.

Oct 25, 2009 08:09 AM #30
Rainer
23,227
Nancy Deichman
Re/Max Premier Realty, Inc. - Ocala, FL
CDPE

B of A constantly has not abided by the dates they gave. I would probably faint if they honored a date for an answer. Other banks have also fallen short. That's why I am hoping for better results with a more efficient company handling them in a more efficient way.

Oct 25, 2009 08:11 AM #31
Rainer
16,557
Nelson Acosta
Ocala, FL

Nancy,

We can only Hope and Pray that B of A accelerate their aid in Short Sales.  This is definately news everyone is wanting to hear.  There is certainly hope on the horizon.

Thanks and keep the Good News coming!

Oct 25, 2009 11:58 PM #32
Anonymous
Robert

Very Nice Information ! Thank You Very Much

Oct 26, 2009 10:27 PM #33
Anonymous
1800ceiling

I think that the idea of short selling fancied the minds of all homeowners who want to make income from the homes and make some Home improvement to their pre-occupied homes. I am also planning to have a short sale of my home in Saint Paul, Minnesota. And go for a home improvement in my present home in which I am staying. I wish all the people to follow the same thing in order to get their homes improved

Oct 27, 2009 02:32 AM #34
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Nancy Deichman

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