Maryland Short Sales 301-343-7671

This week at the REO Expo Matt Vernon, short sale and REO executive at Bank of America made several bold statements.

“We’re going to do everything possible to liquidate property prior to foreclosure,” Vernon said. “REO will still be available, but we will do everything we can to do short sales.” Vernon said the goal is to get as close to market value as possible, or even over market value. “Short sales is not an investment strategy to get homes on the cheap,” he said.

Vernon went on to say that the real estate community will play a critical role in helping homeowners through the process. With that being said Vernon is encouraging homeowners to work with knowledgeable agents through the process.

“We are learning from the past where we struggled mightily,” Vernon said, “and from now as we still struggle. We need the best to execute these transactions.”

Yesterday Bank of America announced that it has begun its implementation of a principal reduction program in conjunction with its home affordable modification program (HAMP). Under Bank of Americas new modification program, qualified homeowners will receive an earned “Principal Forgiveness” over a 3-5 year period.

In english Bank of America is proposing that they will cut the borrowers mortgage balance in order to make their payments more affordable. If the homeowners agree to terms and make their payments on time, the will be forgiven of a portion of the balance of their loan.

Being somewhat of a skeptic, I will believe this when I see it. While I believe that many lenders are trying to help homeowners, there is still too many layers of bureaucracy to make meaningful decisions in a timely fashion.

If you would like more information on Bank Of Americas modification programs, or other options to avoid foreclosure, such as a short sale or deed-in-lieu give me a call today at 301-343-7671 or drop me an email at jnewman@kwflagship.com

Well more details are coming out about Bank of Americas principal reduction plan.  In my opinion, Bank of America is using this plan to avoid more legal issues.  (there are several class action lawsuits filed by homeowners against Bank of America).  According to Bank of America this new plan is estimate to help a whopping 45,000 homeowners.  That’s right 45,000!!!!!!!!!.    These homeowners will have to qualify for the governments modification program and Bank of America may forgive up to 30% of the loan balance IF the homeowner maintains a solid payment history for 5 years.    So if you are a homeowner with a Bank of America loan, don’t get too excited.

Are you experiencing financial difficulties and looking for advice on the options available to you?  Contact me today,  I am personally committed to helping 100 Maryland homeowners prevent foreclosure in 2010.

Bank of America is one of the largest mortgage holders in the country, therefore it is important for many homeowners to understand the Bank of America Short Sale Process.  I have outlined the process below:

1. Find a reputable realtor that is familiar with short sales in general and BofA’s process in particular.
2. Homeowner must have a documented hardship and loan must be delinquent.
3. Market the property to obtain a purchase contract

Once BofA has received a copy of the signed purchase contract

1. BPO will be ordered by BofA to assess value of property and this valuation will be used to determine if the short sale offer is aligned with fair market value.

Additional negotiations or information will be requested such as:

• Purchase Price
• Changes to the HUD-1
• Funds and/or promissary note from borrower
• Deficiency letter
• Income, Tax and hardship verifications

If you have any questions about the Bank of America Short Sales program or would like to see if you qualify give me a call at 301-343-7671 or email me at jnewman@kwflagship.com and I would be happy to speak with you directly.