Orlando Short Sale Expert | Orlando Short Sales, Orlando Short Sale Realtor / Agent

With a glut of distressed properties on its books, Bank of America says it is stepping up efforts to increase the number of short sales it completes.

Bank of America senior vice president and mortgage servicing
executive Bob Hora discussed the bank’s plan yesterday. Short sales were extremely rare before the housing crash—accounting for less than 1% of all sales—because home prices were rising and transactions could take months with mountains of paperwork.

Now they take up 12% of the market, according to Realty Trac.
Bank of America is on track to complete 100,000 in 2011, up from about 42,000 a couple years ago, said Hora. Bank of America wants to increase its volume by 60% in 2012, Hora said. Other large banks, such as JP Morgan Chase, have also recently taken on such efforts. With short sales’ percentage of the market rising since the housing crash, banks were left without the staff to deal with the changing landscape. To keep up, the banks have ramped up their short-sale staffs and are streamlining the process. “If we can shave three weeks off the timeline,
that’s better for everyone,” said Hora in the webinar.

This reflects a growing trend among big mortgage servicers actively encouraging borrowers who aren’t paying their mortgages to pursue short sales. Foreclosures inflict huge costs on banks. According to Realty Trac, the average loss on a foreclosed home was 40% in August, while the loss on short sales was 20%. Bank of America now has 3,000 people on its short-sale account, Hora said. In the housing depression’s early years it had 200 to 250. The bank is also starting to mail out packets of materials to delinquent homeowners encouraging them to try to short-sell. The bank two weeks ago began a pilot program in parts of foreclosure-ridden Florida that offers borrowers incentives as high as $20,000 to short-sell. The program is similar to ones adopted by banks such as Chase, which has a nationwide program that offers borrowers as much as $30,000 to short-sell and relocate. “With a combination of incentives,
staffing up and of people being more aware of short sales, it creates a better and faster process for the homeowner, investor and the neighborhood,” said Thomas Kelly, a spokesman for Chase. Kelly said JP Morgan Chase has doubled its short-sale staff and has completed 120,000 short sales since 2009.

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Jerry LaRose is an Orlando Area Residential Real Estate Expert and Foreclosure Specialist who can assist you with the purchase and/or sale of Real Estate in Orlando, Windermere, Winter Garden, Kissimmee, St. Cloud, East Orlando, Longwood, Altamonte Springs, Maitland, Winter Park, Oviedo, Apopka, Lake Mary, Clermont, Ocoee Florida or any place in the country. Jerry has created a team of professionals throughout Orlando and the country to ensure that you enjoy a smooth transition to your new area.
Please visit:
Avoid Foreclosure / Short Sale Help http://OrlandoShortSaleExpert.com, or http://ShortSellMyOrlandoHome.com
Our Website http://JerryLaRose.com or www.JerrySellsOrlando.com, or http://OrlandoRealEstateVoice.com ,
If you’re a Buyer looking for Great Deals – http://InvestmentPropertyDealsOrlando.com
Please give me a call if you have questions about the Orlando and Central Florida real estate market.
P.S. If you are listing your home as a short sale in Orange, Seminole, Polk, Lake, Osceola and Brevard County Florida and Orlando, East Orlando, St. Cloud, Davenport, Clermont, Longwood, Windermere, Winter Garden, Kissimmee, Winter Park, Altamonte Springs, Maitland, Apopka, Lake Mary, Oviedo or Ocoee Florida make sure you hire an agent and realtor who knows how to do short sales and has the experience to get the job done. We are doing successful short sale packages. The short sale process is complicated and we can help simplify it.
We also have now expanded to help homeowners to Stop Foreclosure in Brevard County Florida. Servicing Melbourne, Coco, Coco Beach, Satellite Beach, Palm Bay, Indian Harbour Beach, South Patrick Shores, Palm Shores, Rockledge, Cocoa West, Merritt Island, Port Saint John and Titusville Florida
Call us at 407-580-7011 or email at jerry@JerryLaRose.com to find out more about Orange County Short Sales and Orlando Area Short Sales.
Orlando Short Sales, expert, specialist, Realtor, Keller Williams Realty, agent, broker, short sale, stop foreclosure

Orlando Investors looking to acquire houses through short sales in the Orlando area just might be in for some good news.

One of the largest holders of second liens in the U.S., the Bank of America, says it’s relaxing its policy on payoffs connected with short sales.

That’s important because large banks have been major impediments standing in the way of thousands of short sales, demanding money for home equity lines and second mortgages that would otherwise be worthless if the short sale property went to foreclosure.

Bank of America had been among the least cooperative of all banks in agreeing to short sale payoff terms, according to industry critics.

The company’s policy was blunt: Pay us 10 percent of what the homeowners owed on the equity line balance or second mortgage, or we won’t sign off on the short sale, which is necessary for the deal to go through.

Now the bank has adopted  “a less arbitrary, more rational” policy.

“What we’re saying (to short sale proposals) is — give us an opportunity to participate and gain at least some of the savings” that will go to the first lien holder — the primary lender on the property — by avoiding the high expenses and losses of a foreclosure.

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.

The bank believes that should open the door to more successful transactions, as well as more fruitful negotiations with buyers and sellers to avoid foreclosures.

The bank’s previous 10 percent policy meant they’d demand $20,000 on a $200, 000 equity line balance, or they wouldn’t bless the deal. But their new policy still means “they want $10,000 if the net proceeds are $200,000″ on a short sale, — even though the economic value of their holding may in fact be zero.

Bottom line for investors: If there’s a Bank of America second mortgage or credit line on the house you’re after in a short sale, work the new numbers. At least some of the time you might be surprised that the answer from the big bank is now ‘yes.’

And watch for other major banks to follow suit.

P.S. If you are listing your home as a short sale in Orange County Florida and Orlando, Windermere, Winter Garden,  or Ocoee Florida make sure you hire an agent who knows how to do short sales and has the experience to get the job done. We are doing successful short sale packages. Call us at 407-580-7011 to find out more about Orange County Short Sales and Orlando Area Short Sales.