In December 2009 Bank of America hired Matthew Vernon to direct their floundering short sale division. His goal was to streamline the short sale process and make them more viable for distressed homeowners, potential home buyers and the real estate agents involved in the transaction.
Based on April 2010 numbers, Mr, Vernon's efforts are paying off for everyone. Distress home owners are finding it easier to obtain a loan modification and those doing short sales are getting faster response time to questions and buyer's offers.
In a Bank of America sponsored seminar the Urban Team attended on May 12, 2010, we heard a great deal about the past problems and corrections made to help all involved. We posted an article on our sister site, Urban Life, that talks about this meeting if you are interested.
Under the new Bank of America policies, the homeowner is expected to try and negotiate a loan modification as the first step in the process. We were told BofA is working hard to get answers back within 30 days of your application.
If the loan modification does not work, you may be eligible for selling your home by short sale. Homeowners need to understand that short sales are intended to provide relief for people in financial distress from things like:
- Job Loss
- Significant Income Reductions
- Divorce
- Relocation
- Medical Emergency and Subsequent Bills
As a point of clarification, short sales are not intended to provide relief for people who simply want to dump a bad investment or people whose homes have lost value. They are intended for borrowers who have experienced financial hardship. Thus, if you have experienced the items noted above, it is unlikely a Bank of America short sale will happen.
Matthew Vernon also discussed Bank of America's deficiency policy. He expects BofA to follow the loan deficiency statues in the state where the home resides. Since Arizona has anti-deficiency statues for purchase money loans, he expects Bank of America will adopt those for Arizona short sales. NOTE: This does not mean the investor who backed your Bank of America or Countrywide loan won't ask for a promissory note to be signed. In addition, home loans that did not go to the purchase or improvement of the home will likely not be forgiven.
To View The Bank of America Short Sale Site Use This Link
