Bank of America has stated that they are relaxing it's policy of payoffs of short sales connected with second liens on homes facing foreclosure. This is good news for many Realtors and homeowners who have had an incredible amount of trouble completing a short sale transaction due to second lien holders demanding more money for equity loans and second mortgages.
Bank of America has been one of the least cooperative institutions to deal with. In the past, they have demanded 10 percent of what the homeowner owed on the equity line. If they did not receive it, they would not sign off on the short sale.
Bank of America is now asking for five percent of the sale proceeds on the short sale, net of realty commissions, closing and other costs. Bank of America feels that this change will open the door for more short sales to be processed and close.
Raffi Tal, CEO of Los Angeles-based I-Short Sale, Inc., one of the largest players in the field, says Bank of America's new policy "will still jeopardize" many short sales that involve its second liens. 5 percent of an equity line can still jeopardize some deals if the mortgage is really upside down.
You will still need a strong negotiator to work your short sale deals. Bank of America along with other lenders still have strong rules regarding seller concessions to buyers, some require the buyer to pre-qualify with their institution.
The bottom line, work the numbers and see how this change can move your short sale from paper to the closing table.
http://www.charlotterealestateforeclosures.com/004D57
