Reo Sales Bank Of America – Bank of America’s Efforts Favoring Short Sale -bank short sale
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Reo Sales Bank Of America – Bank of America’s Efforts Favoring Short Sale
As one of the largest financiers for residences in United States, Bank of America is faced with an enormous number of debt defaulters. More than any other lender they are coping with all kinds of mortgage settlements. Since the numbers are overwhelming there has been much grumbling regarding the speed of response of the bank for short sale applications or should we say lack of speed. The bank now wants to put all this behind and is increasing efforts to hasten up the processing of applications. Let us take a look at the newly announced efforts of Bank of America for short sales.
In a massive effort to precipitate the process, Bank of America has launched new automated system called equator.
The bank now requires all applications to be uploaded through the system. This will speed up the first phase of the process that is getting Bank’s approval
In addition to this BofA has also employed thousands of personnel especially to process sale applications. They have planned to concentrate more on liquidation of properties through short sale before the foreclosure as it clearly benefits both the BofA and the homeowner. As sometimes there are a number of decision makers where short sale is concerned such as the buyer, seller, mortgage insurer, lender and investor to name a few, the process is still lengthy with a lot of paperwork but the BofA is taking definite measures to uphold their part of the deal. Reo Sales Bank Of America
Another factor working in the favor of homeowner is deficiency.
The amount of difference between the agreed sale value of the house and the balance loan is called deficiency. As loss mitigation laws are different in different states, there was a lot of confusion regarding the deficiency as the lenders were still capable of filing a suit to claim the amount back from the homeowner after the sale of the property for as long as 5 years in some states. The Bank of America has clearly stated its position on deficiency.
According to the bank if a borrower proves he can no longer pay the mortgage and has few or no assets, the bank will waive its right to a deficiency judgment during the closing of the short sale deal but if someone can afford to pay deficiency or has assets, the bank will try to negotiate an agreeable amount for the borrower to pay at closing, though if the borrower refuses to divulge financial information, the bank will retain its right to go after the money. The bank genuinely wants to help those who really can’t pay their mortgages but feel the need to safeguard themselves against those who may just be riding the wave.
Bank of America has taken the first step in the right direction and this program should definitely benefit troubled homeowners in these hard times. The actual turnaround time is still to be seen but half the battle is won if the the initiative to increase the pace of the Bank short sale process has been taken. Reo Sales Bank Of America
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