Posted by Paul Francis on Saturday, July 3rd, 2010 at 2:44am.
Old News for Bank of America Short Sales
Representative from Bank of America says there are too many homes in the Short Sale Process..
From Channel 13 Las Vegas:
Bank of America Short Sale Frustrations
“Weeks after our Contact 13 investigation into Bank of America we have uncovered a new wave of problems hitting Valley homeowners.”
Sorry Channel 13 Las Vegas… it’s not new news. In fact, it’s very, very old. But it is nice to finally see a local news station highlighting the frustration multiple homeowners trying to do the right thing across Las Vegas have been going through with Bank of America.
Believe it or not… it has gotten a little bit better dealing with Bank of America since they moved to the Equator system and putting the work of the database entry responsibilities on real estate agents. I’m sure with all of the money they are saving, they could probably hire even more Short Sale Negotiators to speed up the system and deliver on their public relations campaigns.
It is very important for potential buyers (and their real estate agents) to understand that even if everything makes sense for Bank of America to approve the short sale, it’s NEVER guaranteed unless you actually have a written approval with the buyers name on it. Las Vegas Short Sale sellers need to understand that the short sale departments are technically Debt Collectors, so don’t expect them to be your friends in the short sale process.
What Las Vegas sellers can also expect if they are doing a short sale with Bank of America
Not covered in the story:
- Don’t expect Bank of America to waive their future deficiency judgement rights if they approve the short sale and provide a written letter of approval. In Nevada, for loans made before 09/01/2009, lenders have up to six years after the short sale is closed to pursue a deficiency judgement against the seller unless their rights are waived in writing. Nice, huh? I wish I knew who the Nevada State Representative that drew that bill up was.
- If you have a job and are current on all of your other bills, expect Bank of America to request a contribution to release the lien in the amount of 5% of the forgiven amount payable in cash or 10% of the loss on a 10 year, non interest bearing promissory note.
- Don’t expect Bank of America or the Investors they are servicing to automatically approve a short sale. They don’t have to and there is no law that says they have to approve a short sale. If you do not have a true hardship, your chances of getting a short sale approval with Bank of America is reduced significantly.
- You need to get the best price possible for Bank of America short sales. This requires extensive marketing tools to get the buyers in that companies such as Prudential Americana Group provides.
- Keep those Homeowner Association Dues current! Missed payments means fines and penalties are tacked on and the balance grows quickly. The higher the balance, the less chance that anybody will want to pay for them.
While the above situations are not automatic, from my experience, they tend to happen more often then not when it comes to Bank of America short sales.
The key with all Las Vegas short sales is to understand and have actual experience with the short sale process and working with the different lenders. Certain types of buyers are not going to work for certain types of short sales. It’s also very important for communication to all parties on the different stages taking place. Waiting around can be very frustrating and a big tip is to remember that what you may be reading in the mainstream media from press releases, are mainly Public Relation campaigns. In other words… don’t always rely on what you read in the mainstream media.
Remember… every situation is different when it comes to a Las Vegas short sale. Nobody has the exact same loan, the exact same finances or the exact same hardship.
If you are a Las Vegas homeowner that has a true hardship, have explored all of your options such as a loan modification and is getting buried in monthly mortgage payments, please feel free to contact me directly @ 702.592.3058 for more information on exploring the short sale process. Or, you can visit my Las Vegas Short Sales Information page and request an absolutely complimentary market evaluation for your home.
Prudential Americana Group
Las Vegas Real Estate