Thinking of buying or selling a short sale house in the Tampa Real Estate Market? Have you heard horror stories on how much time it will take?
This is an example of a rating on how Bank of America is handling the short sale process. Out of all the banks rated they seem to be the most difficult to work with buyers and sellers.
Real Estate Agents are having a hard time pushing contracts through, buyers are frustrated and the banks are understaffed. For buying it may be time to skip the short sales and focus on foreclosures and the traditional seller.
1sts Mortgages - Short Sale file handling runs about the industry average of 60 days +/-. Normally not flexible when homeowner hardship is unique. Operates very much like the big bank they are – cumbersome policies that are slow to change.
2nd Mortgages - BofA continues to present the most difficult challenges in the servicing industry on Short Sale proposals on home equity 2nds. Our experience is that it takes a cash contribution from the homeowner of 80 cents on the dollar, or 10 cents+/- on the dollar cash and a note for the balance of the deficiency to get BofA to approve a Short Sale on a HELOC. BofA does not seem to respond favorably to documentation demonstrating the borrowers inability to meet the contribution demands.
Update: Hooked on recourse. BofA is very frequently inserting “reservation of right” language in their approval letters. That means they are reserving the right to pursue the borrower for any deficiency balance after the short sale closes. We are seeing it on firsts as well as seconds, and we are seeing it on purchase money debt as well. Bo A is actually telling distressed purchase money borrowers that they will be punished for staying the course and working to get a short sale done — because if the homeowner were to just walk away, BofA would not have the right to so much as wave at them on the freeway. Who is coming up with this stuff? At a time when we are hearing how we should pull together, the largest bank in the United States wants to be sure to kick borrowers while they are down.
We have the full report comparing all the banks listed here
If you need a Realtor in the Tampa Bay Area to help buy or sell a short sale, please contact us for more information 813 784 7744 or emailto: realtyrae@yahoo.com Rae Catanese, Prudential Tropical Realty.
