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B of A adopting new Short Sale Platform

admin — Wed, 04 Nov 2009 16:10:25 +0000

In an effort to deal with distressed properties prior to foreclosure Bank of America is adopting Equator, a short sale module that will enable borrowers and short sale agents to submit documents and check status online 24/7.

The Equator Platform, formerly REO Trans, is a web based electronic system designed to automate the short sale process and improve communication and approval timelines.

In another sign that short sales are increasingly becoming the preferred method of dealing with properties at risk of foreclosure it is reported that B of A has expanded its personnel in the division handling this type of transaction.

With short sales typically resulting in a higher net sales price look for this type of system to be adopted by other major lenders.

No Cost Loan Mod Advice

admin — Wed, 04 Nov 2009 00:37:21 +0000

Before rushing into any short sale we encourage those having trouble making their mortgage payment to consider attempting to negotiate a loan modification with their current lender. It’s possible that an agreement can be reached thats a win-win for all concerned. If you are in this situation please take the time to educate yourself on the options available.

The first thing you need to know about loan modifications is that help is free. Don’t fall victim to one of the many scams that target homeowners going through tough times. You should never be asked to pay an upfront fee for counseling and absolutly never be asked to sign over the deed to your home.

If you are struggling to make your house payment there may be help available to you under the Making Home Affordable program. This plan is designed to assist millions of homeowners who purchased their homes prior to January 1, 2009 with a first mortgage of $729,750 or less and a PITI payment that exceeds 31% of the family gross income.

Keep in mind that eligibility is not the same as approval. The successful approval of a loan modification depends on a number of factors including the borrowers ability to make payments at the modified amount.

Read the information on the Making Home Affordable site and feel free to contact us to discuss how to get prepared before contacting your lender with a loan modification request.

Even when successful there are times that the terms a lender may ask for on a modified loan are not sufficient to prevent a hardship. In the event you are unable to negotiate an acceptable loan modification then a short sale of your property may be your best option.

As always we encourage homeowners in this situation to consult a real estate attorney as well as a CPA. If it is determined that a short sale is your best course of action we can meet with you to go over the required paperwork and discuss your situation in detail.

A New Perspective on Foreclosure

admin — Wed, 04 Nov 2009 00:11:46 +0000

Many buyers shopping for homes in the REO market initially express mixed emotions on buying a home that has been lost to foreclosure. On one hand, they are very excited about the value that can be found in the market right now. On the other hand they are often troubled by the sadness of a home lost in this way by a previous owner.

We understand that feeling but we encourage buyers to think about the situation in a way that puts it in a little different perspective.

First of all, no amount of remorse or empathy will return the previous owner to the home. By the time the home is listed as an REO property the situation has long since passed the point of redemption. The only question remaining at that point is who will be moving in. The new owner has the opportunity to have a tremendously positive impact on their new neighborhood. Many of these neighborhoods have suffered during this process and welcome the new owners as saviors of a sort.

The vast majority of those who have lost homes through foreclosure have not become homeless but have returned to the rental market where they may very well have lived previously. With work they will be eligible to purchase again in about 4 years time and will be far better prepared for success.

Most of the REO buyers we work with are renting immediately prior to buying and in essence are “trading places” with those moving back to the rental market. As renters they don’t see their situation as tragic and we encourage them to consider that the displaced homeowner will be moving back into a situation not unlike the one that they currently live in. The opportunity to own again will come in time.

We see this market as a wonderful opportunity to improve your life. In buying an REO home you will have the chance to secure your future and bring much needed healing to your new neighborhood. Do so without guilt and with the joy of knowing that you have made a positive decision for yourself, your family and your community.