Bank of America announced today it is in the process of lifting its foreclosure freezes in 23 states that require a judicial foreclosure proceeding. On NPR this morning, a spokesman said that the bank has approximately 195,000 non-performing mortgages that have not been paid in more than two years. Next week, Bank of America will reinstate suspended foreclosure proceedings, putting a stronger timetable on those distressed homeowners' attempts to avoid foreclosure.
Now is the time for CDPE-designated agents and distressed homeowners to develop a strategy to put the homeowner back in control, especially through short sales. In fact, Bank of America has made short sales a priority in handling distressed properties. In a memo to the Distressed Property Institute, the bank let us know that they're pushing heavily for agents to be "proactive" and notify the bank as soon as possible when they interact with a homeowner to list a potential short sale. This shows their willingness to work with agents-especially those with the CDPE Designation-toward this dignified solution to foreclosure.
Although Bank of America, JPMorgan Chase, and Ally (GMAC) have not entirely reinstated all of their foreclosure proceedings, it is only a matter of time before they do. It is vital that both CDPEs and distressed homeowners come together quickly to establish a plan and find real solutions.
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