Bank Of America Policy May Speed Up Short Sales

bofa-logoI heard recently from sources within Bank of America that there may be some new policy regarding how they handle short sales, or what are sometimes called a short pay transaction.

If you’re on some rough financial ground, and it’s been difficult to make your mortgage payments, selling your home, even if the home’s current fair market value is less than what you owe, may be an option to resolve that financial difficulty. That’s called a short sale, or ‘short pay’.

Bank of America is poised to launch a pro-active approach to resolving short sale transactions more quickly. If you have a loan with Bank of America, you’ll want to learn more about this.

Call, Text, or Email me. I can talk to you about how short sales and foreclosures work. While I’m not an attorney, and can’t give you legal or tax advice, I can give you some information about how the short sale process works.

One of the historically difficult issues with a short sale has been that it takes so very long for the bank to respond to a contract offer. Part of this is due to waiting for the bank to get an appraisal done on the property.

Another problem is that home owners don’t get in touch with the bank soon enough to resolve the issue. If something major changes in your life, like losing a job, and you see that in a few months you won’t be able to afford the house payment, it might be a good idea to call the bank right away and work with them.

Some banks may consider working with you to modify your loan to get different terms so you get a lower payment. If they can’t make that work, they may agree to working with you to help you get the house sold, even if the sale price is less than you owe… to avoid foreclosure.

There’s usually a huge difference for you financially between going through a foreclosure and selling your home through the short sale process.

Call, Text, or Email me and we can talk about what some of the differences can be, and if you need more info… I can refer you to some great people, like a local real estate attorney, or a local CPA, if you need it.

Bank of America is looking at responding to their clients in a different way than they have in the past. One step they’re looking at is B of A will likely start ordering an appraisal as soon as you tell them you’re considering selling the house due to a hardship, and the transaction will likely be a short sale.

In the past, the banks (and most of them will still be doing this, except Bank of America) wait until the home is listed for sale with a Realtor, and there’s a contract offer from a qualified buyer signed by you (the seller) and it’s sitting on someone’s overcrowded desk in a cubicle at one of the bank offices in some distant city.

These people have a tough job, they usually have no idea what fair market value might be on your house, therefore no reason to consider a short sale until broker price opinions (BPO’s), and formal appraisals are complete. This takes weeks or months sometimes.

By ordering an appraisal in advance, Bank of America will be arming its people with an important tool earlier in the process which will likely speed up the short sale / short pay approval process.

If you’re on the other side of the coin, and thinking about buying a new home or investment property, this could be a good time to talk about a new loan with one of our local lending experts like Cameron White-Ford. Call, Text, or Email me for an introduction.

And, you may want to know about this top-floor Boulder condo for sale, or a very hip and energy-efficient remodeled home for sale in east Boulder, a great suburban Boulder mountain home for sale, well-located Louisville land for sale, , a beautiful Broomfield home for sale , or you may enjoy looking at your neighborhood profiles, and helpful business profiles, I strive daily to give you the helpful information and critical support you want to make a well-informed decision.

Call, Text, or Email me. I’m never too busy for your referrals, as a real estate professional intent on giving back to the community, my relationship-based approach is exactly what you’ve been looking for in a helpful Realtor, and I will listen to you.

Zachary Epps, full-time RE/MAX professional.

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