Major Bank Settlements Pay Cash for Short Sale
Can you get money for doing a short sale with Bank of America, Chase, Wells Fargo or Citimortgage? That’s most likely the question in the minds this morning of many past, present and future short sale sellers. You might get enough cash to take a French Polynesia vacation, you never know. The New York Times reports payments as much as $125,000 to reduce principal balances could be offered as a result of these bank settlements. And the bank I see paying out the most in Sacramento is Bank of America on those Cooperative Short Sales. Yup, banks will pay cash for short sale.
Remember way back when, when this Sacramento short sale agent suggested that Bank of America was actively dumping those old Countrywide loans? It seems I was right on the money with that call. If I spotted a Countrywide loan in a short sale, on that hunch alone, I routinely directed the seller to a Cooperative Short Sale. Never had a Cooperative that way rejected. I have probably initiated more Cooperative Short Sales on my own through Bank of America than any other short sale agent in town.
I recall one instance in particular. I was dealing with a third-party vendor, either REDC or DTS, don’t recall, there are so many. This particular third-party vendor was telling me we had to do a HAFA, and I insisted, no, it needed to be a Cooperative Short Sale, even though I was going out on the limb a little with that demand.
I was driving through Midtown Sacramento with the top down on my car, so it was hard to hear the caller on my Jawbone, but we argued for a good 14 blocks, all the way from J Street to Broadway. Finally, I suggested she call her supervisor to discuss because I didn’t want to hear from her again about a HAFA when this short sale was destined to be a Cooperative. Sure enough, a day or so later, the bank switched to a Cooperative despite the negotiator’s initial objections. That seller received more than $10,000 to do the short sale and no documentation was required. It can pay to disagree with an individual’s assessment. Because individuals aren’t always right.
For months, Bank of America has been releasing servicing. Sometimes, the service release happens smack dab in the middle of a short sale, which is a rude awakening. The bank needs to pay Fannie Mae $11 billion and needs to get that money somewhere, so it’s dumping its loan portfolios. Part of the problem with that is it’s reducing competition among lenders if Bank of America withdraws from the mortgage market. When competition is reduced, it hurts consumers.
It will be interesting to see how this all plays out. If you’re looking to see if you could be a lucky recipient of cash for a short sale, call this Sacramento short sale agent and I’ll check it into for you.
Photo: Flower of Tahiti, by Elizabeth Weintraub