Posts Tagged ‘Bank of America short sales’

Real Estate News REcap

Monday, May 21st, 2012

Will Housing Money be Spent on Housing? The national mortgage settlement with some of the biggest U.S. Banks (from the the robo-signing scandal last year) is supposed to provide many states with money to help with housing issues. California, set to receive a $410 million settlement, could create more programs to help distressed homeowners stay in their homes, strengthen counseling services, fix up neighborhoods that have suffered from foreclosure blight, help people qualify for loans to purchase homes…the list is long and the possibilities endless. Sounds great for housing, right? Not so fast. While State Attorney General Kamala Harris says half of the money will be put into the housing sector, Governor Brown announced that the other half will be used to dig California out of debt. Do you really want my opinion on this one?

Bank of America Offers Up to $30k to Short Sellers: Bank of America announced at the end of last week that it has initiated a new nationwide program that will give up to $30,000 to distressed homeowners upon completion of successful short sales. There are some restrictions – the seller must work with B of A to get a preapproved short sale price before accepting a contract, and the short sale must start before the end of this year and close before September 26, 2013. But B of A says that homeowners in the midst of a short sale may be able to take advantage of this program as well. To find out if you are eligible call 877-459-2852.

Just a quick note – one of my sellers called B of A this morning to see if he was eligible for this new program, but he felt the representative was not very knowledgeable about the program. If anyone has success with this program please let me know.

Condos May Soon Be Easier to Purchase: The FHA announced that it may be changing some of the restrictions that frustrate condo buyers and investors, thus making these properties easier to purchase. Two of the restrictions – a 50% minimum owner-occupancy requirement and a refusal to approve complexes when the delinquency rate on homeowner association dues is over 15% – have made many condos unattainable for those who require loans. There are several other restrictions that are being looked at, and there are no details yet, but it will be good news for buyers and the housing market if these restrictions are loosened.

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Get Paid to Short Sale Your Home

Tuesday, November 29th, 2011

Short sales are a big part of our real estate reality, and they are not going anywhere anytime soon. Although the relief of getting out of a mortgage that can no longer be maintained is usually a blessing for sellers, there is also an added benefit in some cases, of getting  a check from the bank at closing.

There are several current programs that offer to pay sellers at the close of escrow on a short sale:

HAFA. The Home Affordable Foreclosure Alternatives program (HAFA) gives qualified sellers up to $3000 at closing. This program applies to both short sales and deeds in lieu of foreclosure. Click here for more information on HAFA and to see the requirements.

Transition Assistance Program (TAP). This is a Calfornia program that nets qualified state homeowners up to $5000 at completion of a short sale or deed in lieu of foreclosure. Click here to check eligibility and get information.

Bank of America Cooperative Short Sale Program. This program is available to any B of A loan holders who are doing a short sale, and provides up to $2500 to those who qualify.  The difference between this program and HAFA is that B of A preapproves the home for short sale, including the list price (which could be an issue). A 4 month time frame is given in which the agent must sell the home, and at the end of that time if the home has not sold B of A will issue an automatic deed in lieu of foreclosure (which could be a problem). Speak with your agent if you are not sure about how this program compares to HAFA, as the market time restrictions could be an issue. Contact B of A to get more information on the program.

Chase and Citi Short Sale Programs. Both of these lenders have initiated aggressive programs that pay up to $20,000-35,000. But don’t get too excited just yet…in order to partake of this program you need to receive a letter from one of these banks. This program is not owner-initiated. The banks find those homeowners whom they feel meet standards to successfully qualify. I know of one case here in La Jolla where a homeowner did receive such a letter.

Other bank programs. Some other banks are jumping on the bandwagon and offering their own short sale versions. Wachovia Bank sends letters to sellers asking them to participate in short sales, with a financial incentive at closing (between $3000-5000). Other banks have their own programs and more are sure to follow.

Many lenders are creating their own programs to bypass the HAFA program, as it limits the liability of the banks to collect money. With their own programs, controlling many of the terms of the short sale (like price and time frames), but if you are going to use any bank programs you need to understand these programs. Your agent needs to explain the differences between the bank program and HAFA, so that you can make an informed decision as to which one to choose. As I always say, knowledge is power.

 

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