On July 27th we closed another Bank of America Short Sale on a property located in Oak Lawn IL. No mather how many Short Sales I do one thing always remains the same and that is no deal is the same. In this particular case this Short Sale was very easy and smooth. I don't want to set the expectation that they are all like this but they do occur and when you do the right things at the right times, the easy ones occur more often.
Before I continue here is some important information if you are pursuing a Bank Of America Short Sale. Here is some more information on Bank Of America Short Sale Package. You can find specifics here for Bank Of America Cooperative Short Sales which may include homeowners incentives.
One of the best parts of my day is when I get that approval letter from the a bank like Bank of America that has verbiage stipulating .... "We waive the right to pursue collection of any deficiency following the completion of the short sale and the debt is considered settled". The relief this gives my clients is evident in the sound of their voice or if I am lucky enough to see their expression in person is an experience that keeps me wanting to help more and more homoowners in this type of difficult situation.
Banks Know Short Sale Is A Better Option
As a homeowner you should understand that banks do want the Short Sale to be successful but it has to make sense to them. Banks/Investors make more money off a Short Sale vs. Judicial Foreclosure so of course they understand this is the better route even if it doesn't seem that way at times. Not understanding the process or missing a very simple step could be the difference between not only a smooth process but possibly the difference between a Short Sale or Foreclosure on your record. In Illinois the adverse effects of a Foreclosure on your record could be devastating to your financial future and could follow you for years and years.
Bank Of America Is Not As Bad As Many Believe
One myth I would like to squash is attitude towards Bank Of America. I have been doing Short Sales since before they became prevalent in our area and before most Real Estate Agents or Brokers in my market area understood what they really were. I have negotiated with well over 40 plus lien holders / Banks on behalf of my clients resulting in a successful short sale and in most cases with full release of liability of the remaining balance. Of these banks / lienholders Bank of America (BOA of BAC) has been one of the most common. I have learned what to expect from them over the years. In my experience I would not put them on my Short List of the worst banks to negotiate a Short Sale with. In fact, quite the opposite, I would rather deal with a bank like Bank of America vs. some others in many cases. It's interesting, when I sit down with a homeowner with a Bank Of America loan to discuss their options about a Short Sale their faces cringe when they mention Bank Of America. This is either because they had a difficult time with them during this process or in many cases they talked to another agent or attorney that led them to believe they are the worst. Don't believe this it's not true at least not any longer.
When a homeowner tells me who their bank is, it almost never concerns me. When you do enough of these types of transactions, your understand the process is very similar and the expectations are pretty much the same with most of these banks. You have to keep in mind that most of these banks are simply servicers for an outside investor. The banks have 100's of investors they are servicing, some of which you have heard of, Fannie, Freddie, FHA/VA and 100's of private investors you haven't heard of. There are times when it could be an internal portfolio loan and than the rules change a bit. Sometimes you are dealing with Prvate Mortgage Insurance (PMI) in addition to the loan(s) and the type of loan could have an effect on how the deal plays out. There are exceptions to this but if you have an experienced agent or attorney you can expect them to know how to handle the individual situations.
Short Sales Are Being Recognized As A Better Option By Banks
The good news is the banks like Bank of America, Chase, Wells Fargo, Citi and many others are taking steps to improve this process. Like everything when it comes to corporations, this takes time so there will not be an overnight fix. You have read any of my other posts or done your own research, you probably have heard of the large dollar incentives some banks are paying homeowners to cooperate. While not every homeowner will qualify, this does exist and many of my clients have been able to take advantage of this.
If you would like to learn more about Short Sales or if you would like to see if this makes sense to you, please contact me at your convenience. You can also visit www.IllinoisShortSaleAgent.com for more info. I will be updating this on a regular basis to keep you up to date on the status of Short Sales.
Illinois Real Estate Broker
Keller Williams Preferred Realty