Bank Of America “Promises” Principal Reductions…Good News For BOA & Real Estate Market!
Bank of America frustrates real estate agents trying to help banks, communities and property owners.
Sadly, Sarasota homes for sale continue dropping in value & extending days on market.
Naturally, Bank of America’s press release promoting principal reductions instantly caught the attention of market watchers.
As quickly as the press release appeared, it seemed to disappear….
Principal reduction chatter quickly fuels a raging fire from those who support and those who denounce. Unfortunately, the Sarasota real estate market is NOT recovering on its own, forcing more property owners into default.
PRINCIPAL REDUCTION OFFERS (FALSE) HOPE?
Bank of America surely must realize that cutting the mortgage debt obligation makes a helluva lot more sense than spending months foreclosing and additional months thereafter selling a distressed property…considering the debt owner can foreclosure at all.
At the end of the day, Bank of America sells your house months later for $1,000s LESS than what they’d lose by cutting your principal and keeping you in your home.
Hmm, makes sense to me. But, here we are a few months into the program and I hear no one dancing in the streets after getting hooked up with BOA’s new program. When BOA publicly announced it would forgive mortgage loan principal for troubled homeowners who owe more than 120 percent of their home’s value, real estate market watchers (and property owners) celebrated this forward-thinking decision.
Bank of America pledged to offer an “earned principal forgiveness” of up to 30 percent in two stages. That is, they agreed to offer an interest-free forbearance of principal that the borrower/homeowner can turn into forgiven principal each of five years, provided they stay current on their payments.
Great idea. Property owners cannot simply take the money and run. They need to stick around for up to 5 years to receive the prize. Well worth the wait.
Instead, Bank of America LOSES more money and mucks up short sales unlike any other bank.
Right now, I’m working about 8 short sales with Bank of America. On one, Bank of America initially told me I could be involved with the short sale (even though I’m related to the seller).
However, BOA kept rejecting the short sale, citing “non compliance.” Never – not even once – would BOA explain “non compliance.”
Numerous times, I asked if there was an issue with me (list agent) involved in the short sale.
Always, Bank of America categorically said there was no issue, even after escalating file. Nonetheless, I asked property owner to excuse me from the file. We mutually agreed to cancel the listing, allowing property owner to re-list with a different list agent.
For some strange reason, Bank of America claims it did NOT receive paperwork showing new listing agent. Worse, BOA claims it would not have mattered since current offer involved me!
WHAT THE HECK?????
What the heck should it matter if I am the list agent?
Why can’t Bank of America openly disclose its “rules?” Why must BOA “play games” with property owners, real estate agents & buyers?
It’s taking LONGER and LONGER to work a short sale.
It’s taking more and more Advil to work a short sale.
Principal reductions would help Bank of America, real estate market & property owners.
All 3 would W-I-N!!!!!!
If you or someone you know wants to buy or sell a house in or around Sarasota, call me. I will help you navigate today’s real estate jungle.
Sarasota real estate market needs Bank of America to lay the ground rules & stop abusing real estate agents who are trying to HELP the local real estate market, property owners and Bank of America. To my knowledge (though banks could deceive me), Sarasota foreclosures do NOT benefit the local market, property owners or banks, do they?