Bank of America short sales are on the right track. I read something that says Bank of America does more short sales than any other bank these days. I believe it. I do more Bank of America short sales over any other kind in Sacramento. It's rare that I encounter a bank I haven't worked with before. But the worst kind of Bank of America short sale has really nothing to do with Bank of America and everything to do with HUD. Housing and Urban Development. It's the dreaded FHA Bank of America short sale.
One of my big beefs with FHA short sales is the fact HUD routinely tries to reduce the buyer's closing cost credit. It doesn't want to authorize payment over 1% of the sales price. This is HUD, that insures an FHA loan for many first-time home buyers. Loans in which most buyers in Sacramento -- and probably elsewhere in the country -- need a little help with closing costs. Most home buyers need at least a 3% closing cost credit.
By implementing this procedure of a maximum of 1% credit, HUD is saying no to FHA buyers. In other words, HUD is preventing FHA buyers from buying an FHA short sale. HUD is telling FHA buyers we don't want you. Go elsewhere. Buy something else. Stay away from FHA short sales.
Thanks, HUD. Your government tax dollars at work.
On the other hand, it gets worse. A Bank of America FHA short sale also has a procedure in which short sale sellers are first examined for a loan modification. The bank probably has absolutely no intention of granting a loan modification. But sellers get caught up in this act. What happens is the seller cannot opt out. The loan modification must be denied. It's called the FHA Waterfall. A short sale seller either sinks and drowns or the raft sails over the edge.
That's one of the reasons an FHA short sale at Bank of America can take 3 to 4 months to get off the ground. Because sellers can get stuck in the FHA Waterfall. If your Sacramento short sale agent can't push you over that waterfall, you're in trouble. You might ask your agent to escalate your short sale. You need to get past the participation stage to move forward on an FHA short sale.
I specialize in Bank of America short sales in Sacramento. If you're looking for a Sacramento short sale agent, call Elizabeth Weintraub. An FHA short sale also pays qualified sellers to short sale. Other types of short sales pay cash, too. I just closed another Cooperative Short Sale through Bank of America yesterday in which the sellers received $2,500. They didn't even live there. They were investors, but I knew I could get them qualified for a cash payment. You might qualify, too. Call 916 233 6759.
---
Certified HAFA Specialist
My Sacramento Real Estate Listings
Elizabeth Weintraub is an author, home buying columnist for The New York Times-owned About.com, a Land Park resident, and a Land Park real estate agent who specializes in older, classic homes in Land Park, Curtis Park, Midtown and East Sacramento. Weintraub is also a Sacramento Short Sale agent who lists and successfully sells short sales throughout the four-county Sacramento area. Call Elizabeth Weintraub at 916.233.6759. Put 35 years of real estate experience to work for you. Broker-Associate at Lyon Real Estate. DRE License # 00697006.
The Short Sale Savior, by Elizabeth Weintraub, available at Amazon.com.
Lyon Real Estate is not associated with the government, and our service is not approved by the government or your lender. Even if you accept this offer and use our service, your lender may not agree to change your loan.
Photo: Unless otherwise noted in this blog, the photo is copyrighted by Big Stock Photo and used with permission.
The views expressed herein are Weintraub's personal views and do not reflect the views of Lyon Real Estate.
Disclaimer: If this post contains a listing, information is deemed reliable as of the date it was written. After that date, the listing may be sold, listed by another brokerage, canceled, pending or taken temporarily off the market, and the price could change without notice. It could blow up, explode or vanish. To find out the present status of any listing, please go to elizabethweintraub.com.
