Equator System for BOA...Good or Bad
EQUATOR SYSTEM FOR BANK OF AMERICA DOWNFALLS
Many new Short Sale Agents think that the new BOA Equator System is good thing. They upload their documents and can see they are in the system and well la! They are off to a good start! I have to agree that the upload documents for a brand new, never been requested Short Sale is much easier than the old fax it in 100 times and hope their fax machine can handle 70+ pieces of paper and the fax number the minimum wage person you spoke to when calling the main, actually gave you the correct fax number. But all in all I do not find the process to be an overall great improvement. In fact the new system has allot of downfalls and pitfalls. #1 if they mistakenly delete your file...did you KNOW YOU need to re-upload the entire file again and start over from scratch? This includes countered files and approved files that have been in the system for MONTHS AND MONTHS! Also many of the "Negotiators" are new to the system and do not know how to properly work the system. Many do not know to check and see if there is MI on the loans!
Unlike the old system which we will all agree was S...L...O...W! At least if you received written approval and the buyer walked, you could send in a new offer with a new buyer and as long as the net to the bank was the same and the numbers matched you could get a new written approval with-in 2 weeks or less. Now? Well you need to start over and they give you a brand new negotiator for the next deal. Who comes up with a whole new set of numbers the "Investor" wants.
Also what is the point of sending in a HUD1 if they are only going to ask the Agents to fill it out each time they send you a counter offer?
How many times do you e-mail with no response on the other end?
I was told that each negotiator has 400-450 files to work at a time! I suggest they cut some of the Fat from the CEO's BIG FAT BONUS! AND HIRE MORE HELP! Time is money! Can't they see that if they were able to hire 4 times more people and get the file closed faster they would be saving money?! There are home owners who have not made their payments in over a year and who have been trying to do a Short Sale for 11 months! If the bank could have approved and closed the Short Sale with-in 60 days they would be saving money. The amount of low hourly wage they are paying the negotiators would be off set by closing the files faster and getting the bad asset off the books. Which brings me to the next point....
FORECLOSURE ALTERNATIVE
- Property is principal residence.
- Mortgage originated before Jan. 1, 2009.
- Mortgage is owned or guaranteed by
- Borrower is delinquent or default is foreseeable.
- Homeowner demonstrates hardship.
- Borrower's total monthly housing payment exceeds 31 percent of gross income.
- Unpaid principal does not exceed $729,750.
According to HAFA rules, lenders now must offer a short sale in writing to the borrower within 30 days if the borrower does not qualify for or complete a loan modification. Borrowers then must respond within 14 days to the lender's short sale agreement.
When a purchase offer is made, borrowers must submit the sales contract to the lender within three days, along with the buyers' mortgage preapproval and the status of negotiations with other lien holders on the seller's property.
Finally, lenders must approve or deny the contract within 10 days.
HAFA rules also state that lenders must release borrowers from the obligation to repay the difference between the sales price and the loan amount. No deficiency judgments are allowed for a first or second loan.
In the past, short sales were especially difficult for homeowners with more than one loan on their home, since the home sale typically repaid only the first mortgage. HAFA's financial incentives include a payment of up to $3,000 for second mortgage holders.
Other HAFA financial incentives include $1,000 to loan servicers to cover administrative fees, up to $1,000 for mortgage investors who agree to share short sale proceeds with second lien holders and $1,500 to the homeowners for relocation.
The moving expense allocation acts as an incentive for them to stay in the property until the short sale goes through.
BANKS FRAUD STOCKHOLDERS
Short Sale Agents CSP Designation
When looking into doing a Short Sale the biggest mistake a Seller can make is not Listing their property with an Agent who is highly educated and Certified in Short Sales. Make sure the Agent has an CSP Designation. Too many Agents are Advertising themselves as Short Sale Experts who are not. There are key aspects to being successful in Listing and Selling Short Sale Property. Agents who know what they are doing, who are trained and certified have a higher success rate in closing a transaction than those who do not.
Tax Ramifications on a Short Sale
Many people want to know the Tax Ramifications on a Short Sale. Know the difference between Recourse vs. Non-Recourse Loans. Make sure to speak to a Real Estate Tax Accountant or a Real Estate Attorney about your situation with regards to Taxes on a Short Sale. NOT all Accountants understand the tax issues with regards to Short Sales. You need to make sure you are speaking with someone who is up on the new laws, bills and what is going on with Short Sales. Know that with a Foreclosure there are also Tax Ramifications that maybe more harsh than a Short Sale. MAKE SURE TO SPEAK TO AN EXPERT!
Slight Help for Underwater Homes Las Vegas
6 companies to get $9.9B under mortgage program
If you are more than 5% under water in your house(s) the Federal money going to banks won't apply to you. Those of us who are 25%, 50% or more under water will have to find our own ways of lowering the principal.
What can you do? Sue the Banks for predatory lending. Sue the Banks for violations of TILA and RESPA. Sue the Banks for appraisal fraud - if you can prove any of the above. Stop paying your mortgage - let .em have it back. File for a Chapter 13 Bankruptcy - if you have income. File for a Chapter 7 if you don't.
It's only rational.
To read more about the $9.9B mortgage program, go here.
