Some new news from Bank of America

By
Real Estate Agent with The Approval Experts

The rumor mill around the short sale world is that Bank of America is playing hard ball on the 2nd mortgage HELOC's. A recent call into my office presented some challenges for a local seller who found out that he had two choices. One, he had to agree to pay 85% back to Bank of America through a promissory note on his HELOC or they would not approve the short. His second option is fairly obvious which is allowing the home to go to foreclosure and force the banks to file a deficiency judgment. This is one of those things that makes me scratch my head a bit. I can't imagine anyone would agree to 85% with a promissory note, but I am sure some sellers will go for that.


From what I am hearing Bank of America has decided to instate a number of new policies on both the first and second mortgages, purchase money and HELOC's.  Supposedly this 85% agreement on the HELOC with a promissory note is non-negotiable. I hate that word as my belief is everything is negotiable, but some banks really don't negotiate which amazes me. I find it interesting that the government is trying to incentivise banks to push for short sales and yet some banks would rather take nothing instead of something.

Comments (8)

Keith Elliott Jr
KEIRE Realty Group - Manassas, VA
Principal Broker/Owner

Hello Jeran,

Welcome to Active Rain and congratulations on your first post! The opportunities to learn and network are incredible here. Best of luck to you!

-Keith

Nov 11, 2009 11:22 AM
Jason Rose
123 ConEd LLC -- Michigan real estate continuing education - Farmington Hills, MI
www.123ConEd.com

Welcome to ActiveRain, Jeran, and congratulations on your first post! This is a great website that's full of interesting and insightful information. Have fun and enjoy!

Nov 11, 2009 11:57 PM
Jeran Fraser
The Approval Experts - Encinitas, CA

Keith and Jason,

Thank you both. In the ever changing world of both real estate law and technology I find Active Rain as a perfect avenue for information. Creativity in the realm of real estate can be ehanced by multiple ideas and the wealth of information others have to share. I wish you both luck in your business and appreciate the comments.

Nov 12, 2009 05:09 AM
Jean Terry
Keller Williams Realty Spartanburg, S.C. - Spartanburg, SC

Hi and welcome to Active Rain, a great site to network, share, learn, and have fun. Good luck.

Nov 12, 2009 01:32 PM
Sergio Rebollo Jr.
Real Estate TeamMates - Miami, FL

Welcome to ActiveRain. This is a great community to network with others as well a great place to learn from other's experiences and knowledge. I've enjoyed it; I hope you enjoy it as well.

Nov 13, 2009 09:41 PM
The Trumm Team Omaha Homes for Sale, Real Estate
Keller Williams Greater Omaha - Omaha, NE

Welcome to ActiveRain!

If you would like a few tips on getting the most out of ActiveRain, simply follow these steps:

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This will take you to my blog on how to get the most out of ActiveRain.

If you ever have any questions, just let me know.

Troy Trumm, Trumm Team - 402-943-9494, Omaha NE

Omaha Homes For Sale

Omaha Real Estate

Nov 15, 2009 11:41 PM
Yvette Gardner
Keller Williams Realty, Spartanburg, SC - Spartanburg, SC

Welcome to Active Rain and congratulations on your first post.  It looks like you're off to a great start.  We hope you enjoy A/R as much as we do.  There are many opportunities to share your knowledge and learn from others. Take care, Yvette & Dennis

Nov 17, 2009 01:45 PM
Mike Linkenauger
Jacksonville, FL
Short Sale Specialist Network

Short sales with Bank of America are like pulling teeth.  Unfortunately they have one of the longest approval times in the industry, and the new Equator system has only helped SOME!  Lets see them get it to TEN days like they are supposed to!  We have a great group to discuss short sales with BOA if it helps some:

http://www.theshortsaleguide.com/group/bankofamerica

Apr 20, 2010 05:22 PM