Thursday, May 17, 2012

From The Desk Of Bob Mittleman



There is going to be confusion about what this actually says and what people think it says, and it does say a few different things!

This is not a blanket program that will pay a relocation benefit to every seller. The final determinations have not yet been made. This program is based upon the recent AG Settlement with Lenders and only covers Loans that OWNED and SERVICED by BoA.

GSE (Fannie and Freddie) and other securitized Loans that are serviced by BoA do NOT qualify for this incentive.

As presented here, this program is aimed at Pre-Approved Short Sales, (also know as conditional short sales) which means that there is no contract submitted with the Short Sale Package. Notice that there is a phase that says in process Short Sales MAY also qualify. Operative word here is MAY.

Ergo, the potential for confusion not only exists, but is highly likely.

Be advised that the history of pre approved short sales has been less than satisfactory so far by most accounts and many Realtors have been dissatisfied with the values assigned to the properties as well as the inability to bring in purchase contracts at those price points. Not to say this program isn't going to be beneficial, but you need to have clarity on what it really is and if it applies to a particular transaction before sellers develop expectations that MAY not exist in their situation.

Check out this link to for some interesting information on this topic, in general. they are an excellent source.

BofA to pay homeowners more for short sales

Bank of America launched a new short sale program that could pay distressed homeowners between $2,500 and $30,000 in relocation assistance.

Over the last two years, the bank completed roughly 200,000 short sales. For the first three months of this year, it completed 30,000. As new servicing requirements and corrections lengthened the foreclosure process over the last two years, short sales have taken a greater share of the market. In some areas, short sales have surpassed REO transactions as a percentage of the market.

The new program with BofA requires a borrower to work with the bank to obtain a preapproved sales price before submitting a purchase offer. To qualify for the program, a short sale offer must be submitted by the end of 2012 and close by Sept. 26, 2013.

BofA said short sales already started may be eligible.

"This program can help customers make a planned transition from ownership when home retention options have been exhausted or they have made a decision not to keep the home," said Bob Hora, executive of home transition services for BofA.

The program will be offered for mortgages owned and serviced by the bank. The amount of relocation assistance provided will be determined on a case-by-case basis.

The program will be offered for mortgages owned and serviced by the bank. The amount of relocation assistance provided will be determined on a case-by-case basis.

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