Bank of America DOJ Settlement – Avoid Short Sale – Foreclosure – Crestview FL

Bank of America Department of Justic settlement

If you have a Bank of America mortgage and are facing foreclosure, part of your principle may be forgiven if you qualify for the Bank of America – Department of Justice SettlementThis settlement was negotiated between Bank of America and DOJ to make reparation for past lending practices, primarily for prior Countrywide and Merrill Lynch mortgages.  Certain Florida homeowners will qualify for mortgage modifications, principal forgiveness, forbearance, or extinguishment of their home equity lines of credit.

I just had such a success story with a Crestview Florida home seller whose Veteran’s Administration (VA) mortgage was reduced by over $60,000, or 25% of the balance, as part of this program. He was notified of the opportunity during an attempt at VA Compromise Sale (type of short sale) of his Crestview home.  We had just received a contract for purchase, when the DOJ settlement offer came from Bank of America.  They proposed that he enter a trial mortgage payment period at a reduced interest rate and succeed at making payments for three months. Even though this was a stretch for him since he was in a VA Compromise Sale situation, we figured out that at the new principle balance, he could sell his Crestview home and actually make a profit!  He accepted the offer from Bank of America, and we changed the terms of the purchase and sale agreement to remove “short sale” and add a contingency for the successful completion of loan modification and principle reduction.  The buyer was more than happy to wait the 90 days, as that is about how long a short sale would have taken and the risk of approval was far less than with a short sale.  (I was happy to have less of a headache, too, without all the short sale paperwork!)

The question came up – “Could the seller actually put his property on the market and receive an offer during the DOJ Settlement trial modification period?” The answer was “yes” from Bank of America.  Sellers who receive this offer might be struggling to make their mortgage payments and have actually stopped making them, contemplating foreclosure or short sale.  This DOJ Settlement with Bank of America is a financial windfall for these sellers because it will  significantly boost their financial situation.

Do you qualify for the Bank of America – Department of Justice Settlement in Florida? You will need to call Bank of America at 1-877-488-7814 and ask them. If not, there may be other solutions for you to avoid foreclosure, reduce the impact on your credit, and possibly save your home with a different type of modification, or by doing a short sale.

Questions?

It’s Wendy… It’s Sold!

Wendy Rulnick, Broker, Rulnick Realty, Inc.
Call 850-650-7883 ext 204
Email Wendy:
itswendy@rulnickrealty.com

Wendy Rulnick, Broker, has been featured in “Kiplinger Personal Finance Magazine” and “Florida Realtor Magazine”.  Wendy Rulnick sells real estate in Destin, Santa Rosa Beach, 30A, Miramar Beach, Seagrove Beach, Watercolor, Sandestin, Seaside, Crestview, Rosemary Beach, Mary Esther, Shalimar, Fort Walton Beach, Niceville, Bluewater Bay, Navarre, Panama City Beach. 

811 Overbrook Dr., Fort Walton Beach FL Short Sale Approved

Overbrook Fort Walton Beach short sale

 

This short sale at 811 Overbrook Dr., Fort Walton Beach Florida was just approved! Here are the details:

Senior Lien (first mortgage): PNC

Balance: $120,000 appr

Junior Lien (second mortgage): Bank of America

Balance: $90,000 appr

Market Value:  $190,000 app

This short sale was only “short” to the junior lien, Bank of America. What does that mean?  If a home sale nets more than a senior lien’s balance, they are paid in full, therefore they are not “short”. The junior lien will get whatever leftover proceeds there are after paying the senior lien and other closing costs, such as title insurance, commission, pro-rated taxes, state transfer taxes, etc.  In many cases, the junior lien in this type of transaction gets a substantially higher payment than a regular short sale, where typically all liens are short. In a normal short sale, the senior lien will pay the junior lien a standard amount, such as 10% of their balance or a HAFA amount of $8,500.00, for example.

This Overbrook subdivision, Fort Walton Beach Florida, short sale netted Bank of America about $50,000, with which they were quite happy.  They approved the sale in 45 days.

It’s Wendy… It’s Sold!

Wendy Rulnick, Broker, Rulnick Realty, Inc.
Call 850-650-7883 ext 204
Email Wendy:
itswendy@rulnickrealty.com

Wendy Rulnick, Broker, has been featured in “Kiplinger Personal Finance Magazine” and “Florida Realtor Magazine”.  Wendy Rulnick sells real estate in Destin, Santa Rosa Beach, Miramar Beach, Seagrove Beach, Watercolor, Sandestin, Seaside, Crestview, Rosemary Beach, Mary Esther, Shalimar, Fort Walton Beach, Niceville, Bluewater Bay, Navarre, Panama City Beach. 

Destin Short Sale Sellers Get Cash Back From Bank of America

Bank of America short sale
Have you been sitting on the fence about selling your Destin or Santa Rosa Beach Florida property as a short sale?  Now may be the time to act.  Bank of America has just announced that Florida sellers may be able to receive $5000 to $20,000 cash incentive at closing for completing a short sale.  There are existing Bank of America programs that pay sellers $1500 to $3000, but this move is unprecedented.  To qualify, you’ll need to initiate your short sale prior to getting a contract on your Destin or Santa Rosa Beach home.

Apparently, Bank of America is enhancing its offerings to exceed federal HAFA guidelines, which currently suggest a $3000 relocation incentive to the short sale seller, and its own Co-op Program, which pays less.  They are only offering the incentive to eligible Florida sellers before they get a contract at this time, but hint at future program changes
 
Some loans don’t qualify for the program – VA Compromise Sales, Ginnie Mae, FHA and USDA, lot loans and others. If you own a property in Destin, Sandestin, Santa Rosa Beach or surrounding towns, have a Bank of America mortgage and need to short sale, the time may be now. So get a Destin short sale agent on your side, and maybe get some cash. The deadline is November 30. 

Florida Enhanced Short Sale Relo Assistance