BANK OF AMERICA -CASH FOR KEY- New Program - To encourage homeowners with house values under water to go through with shortsale their properties, Bank of America will implement a new "aggressive and meaningful" Cash for Keys program by the beginning September 2011. This new and aggressive “cash for keys” type program will take into consideration the real world benefits to the homeowner of the extended foreclosure lawsuit. The new program will offer significantly greater amounts of financial incentives and complete waiver of deficiency rights. This may be a huge opportunity for homeowners to take the advantage of the slow moving foreclosure process. If an owner is given $10,000…$20,000…$30,000 and a complete deficiency waiver its safe to assume they will be more motivated to do a short sale faster.
- Bank of America also addresses head on the misinformation regarding missed payments and short sales. Bank of America made it very clear that an owner absolutely does NOT have to miss any payments in order to do a short sale. Additionally, there is no longer a requirement for any short of hardship. The specific statement of policy was that delinquency is NOT necessary provided other factors of hardship and imminent default can be shown. Being underwater is considered as a hardship.
- A conflict arose regarding a statement made many times that a low FICO score was a determining factor in obtaining the coveted waiver of deficiency in the short sale approval letter. The conflict was relative to the statement that you can do a short sale without defaulting on the mortgage.
- The fight to get short sales through is constantly being waged between lender and association. Bank of America is also considering setting up an association lien subset of negotiators to improve the short sale opportunities even with unpaid association fees.
- The bad news is that the Bank of America time-line for short sales still takes about4 and a half months to have their final approval..
Source: The Real Estate Insider News Harris Real Estate University
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