Litchfield Park and Goodyear Distressed Homeowners: Bank of America's New Cooperative Short Sale Program
If you are a Distressed Homeowner in Litchfield Park or Goodyear and have a Bank of America loan, your Short Sale experience could be less frustrating. Bank of America recently announced their new Cooperative Short Sale Program. This is great news for Distressed Homeowners because a cooperative approach to Short Sales minimizes many of the challenges in a traditional Short Sale. In order to understand how this approach is beneficial, let's take a brief look at the potential pitfalls of a tradition Short Sale.
Pitfalls of a Traditional Short Sale
- Short Sale Process begins AFTER buyer's offer is received
- The sales price of the property is not evaluated by the bank until AFTER an offer is received
- Multiple counter-offers can occur before and after the investor reviews the Short Sale
- The Short Sale Approval or Denial Decision is at the END of the process
- The bank may add stipulations to the Short Sale at the END of the process
- High fallout rates for traditional Short Sales
- Long decision timeline between the time a buyer's offer is received and an approval or denial
- Buyers get frustrated and walk
The Shift to Cooperative Short Sales
Bank of America is not the first to introduce such a cooperative approach to Short Sales. Most of you have heard about HAFA, the federal government began the shift to Cooperative Short Sales when they implemented the Home Affordable Foreclosure Alternative (HAFA) program in April of 2010. Fannie Mae and Freddie Mac soon implemented their HAFA programs in August of 2010. Bank of America has followed suit by launching their own Cooperative Short Sale program this year.
Advantages of a Cooperative Short Sale
The single biggest advantage of a Cooperative Short Sale for Litchfield Park and Goodyear Homeowners is that the terms of the Short Sale are decided BEFORE listing and marketing the property. Before listing the property, Bank of America will provide the terms such as the list price and deficiency judgements. In doing so, the bank is able to provide a shorter decision time once an offer is received. In fact, Bank of America claims that once an offer is received, they will provide a decision in 10 days! Which means Buyer's will be less frustrated with the purchase process. In addition, Bank of America is offering $2500 in relocation assistance.
Disadvantages of Bank of America's Cooperative Short Sale Program
With the Bank of America Cooperative Short Sale program, the investor "may" require the right to pursue a deficiency. It "may" however, be waived, it will be determined by your individual situation. But at least you will know before you proceed with your Short Sale.
Your Next Step
It is important to contact a Realtor® who specializes in Short Sales in your area before you proceed. Your agent will get you started on your Short Sale journey and ensure you follow the right steps with Bank of America. In addition, you may qualify for HAFA and it is important to determine that early on in your process. Although the process is similar, HAFA has one benefit, your bank must waive the right to a deficiency judgement. In addition, the HAFA program offers $3000 in relocation assistance.
If you or someone you know is feeling the financial pinch of today's economy, let me help relieve your mortgage payment pressure by educating you about your foreclosure alternatives. The time is now to escape the grip of foreclosure and take control of your financial future.Don't hesitate to check out our website for the free resources at:
You will find valuable information regarding foreclosure, strategic foreclosure, and short sales that can help you make the right choice. The West Valley Home Team at Welcome Home Realty specializes in real estate in the West Valley, including Litchfield Park, Goodyear, Avondale, Buckeye and the surrounding areas. If you would like a free confidential consultation please call 623-252-9350.