How To Find Short Sales With Bank Of America

"Like most major banks, Bank of America is burdened with distressed homes, particularly short sales. But since it’s not part of a short sale bank’s business to own property, they want to get rid of them as soon as possible. That’s why the Bank of America short sale department has started publishing a list of short sales available to buyers, making it easier for potential buyers to find the right homes. If you’re thinking of investing in a Bank of America short sale property, here’s a quick guide to help you search more efficiently.

Online Listings

Start by looking at the bank short sale listings online. Bank of America keeps a list of short sales and foreclosures on its website, regularly updated so you can find the newest listings or search my specific parameters. If you’re working with an agent, he or she can also carry out the search for you. Make sure to check from time to time as new homes are being added all the time, and some of the best ones are quickly sold and closed.

Short Sales vs. Foreclosures

A short sale bank typically lists more than short sales—they can also offer homes in pre-foreclosure, auction homes, and real estate-owned or bank-owned properties (REOs). The difference between these homes is the stage of foreclosure they are in. Pre-foreclosure homes are often sold as a Bank of America short sale to stop foreclosure proceedings. Auction homes are in actual foreclosure and sold through a public bidding, while REO homes are foreclosures that failed to get bids. The selling process varies slightly with each one, so consider talking to a Bank of America short sale specialist to see which will work best for you.

Local Branches

If you want more area-specific information, you may be better off visiting a Bank of America short sale office near you. They may be able to show you homes in your city, or even a particular community or neighborhood. It’s also a good way to check out average short sale bank prices, so you can adjust your budget accordingly.


Making The Most Of Your Search

Try to make use of any search features available. Besides searching by location, for example, you can choose to search within a specific price range, or narrow down to a specific property type, floor or lot area, or even features such as parking or number of bedrooms. Have a good idea of what you want in a home beforehand, so you’ll spend less time searching and more time negotiating ideal terms with the short sale bank."

Tips For Citibank Short Sale Sellers

"Citibank holds a large share of today’s distressed mortgages, and luckily, it’s one of the first major banks to take part in the government’s short sale and foreclosure prevention programs. The Citibank short sale process has been greatly improved over the past few months and has helped thousands of homeowners out of foreclosure. If you’re struggling to keep foreclosure at bay, a short sale Citibank deal may just be the solution for you. This article offers a few tips on getting approval.







Choose A Good Realtor.

Citibank short sale officials recommend working with an experienced realtor. This will not only help you sell your home faster, but also help you avoid common pitfalls in the short sale Citibank process. They’ll also help you do the math and present a viable proposal to the bank, as well as get your home seen by more potential buyers. Check local listings to see which realtors in your area have the most experience with short sales, or ask your friends and family to recommend one.

Check Your Home’s Value.

A Citibank short sale works best if your home has negative equity, meaning it’s worth less than what you owe on your mortgage. A comparative market analysis, provided by your realtor, can give you an idea of what your home is worth in today’s market. If you can still make profit out of the sale, short sale Citibank officials may recommend other ways to help, such as modifying your mortgage or refinancing to a lower-interest loan.

Explain Your Hardship.

The Citibank short sale department is known to be strict on hardship requirements. You must have a valid hardship to qualify for any mortgage workout. Common examples are medical emergencies, job loss, divorce, or death of a family member. The key is to prove that the situation was out of your control. You will need to explain this in a hardship letter and present supporting documents, such as medical bills or dismissal slips.

Do Your Research.

Many Citibank mortgages are co-owned by secondary lien holders, who will have to approve the short sale as well. You can find out who owns your loan by calling the bank directly or looking it up on the bank or insurer’s website. The more parties that have a stake on your mortgage, the longer the short sale Citibank process can be. Try to get in touch with the secondary lenders and keep a record of every exchange to avoid unnecessary delays."

Foreclosure, Short Sale, REO: What’s The Difference?

Distressed properties have been crowding real estate markets since the housing crash, and for many, this means a chance to snap up homes at below market value. First-time buyers, repeat buyers, and property investors have all benefited from this trend. But surprisingly few of them understand the basic differences between distressed homes. A foreclosure is different from a short sale, and both are different from bank-owned homes. This article discusses the types of distressed properties and why the difference matters to the buyer.


Foreclosures

A foreclosure is basically a home that a lender has seized because the borrower can no longer pay the mortgage dues. Lenders sell them off in a foreclosure auction, where it goes to the highest bidder. Foreclosure prices are usually low because the home has lost market value and lenders have already taken a loss from the borrower’s missed payments. It’s not uncommon for a home in foreclosure to sell for 40% below market prices. The catch is that foreclosed homes are sold as is, meaning the buyer cannot request repairs or inspections as with a regular sale.
Real estate-owned (REO)

An REO home is a home that has gone into foreclosure but did not get any bids. Lenders then try to sell the home off themselves, often using conventional methods such as MLS listings and realtor services. Usually, they’ll fix up the home and do a title search so that it’s more attractive to buyers. Because of this, REO homes may cost more than foreclosed properties—typically no more than 20% below market value. Unlike in a short sale, buyers do not get a second chance on an offer, as banks get multiple offers and simply go with the highest. REO homes are also sold on as “as is” basis.

Short sale

In a short sale, the buyer sells the home for less than the mortgage they owe and uses the proceeds to settle the loan. Lenders either forgive the difference or claim the deficiency afterwards. This typically happens when the buyer’s mortgage is upside down, or their debt on the home is greater than its current value. Because of this, short sale prices are at most equal to market value; the bank usually decides whether or not to accept less. Short sale homes can be listed the same way as conventional homes, except that offers have to be approved by the lender. This is usually noted somewhere in the home listing so that potential buyers can tell it’s a short sale.

How Foreclosure And Short Sale Affect Your Credit

"Credit is often one’s first concern when they face foreclosure or consider a short sale. That’s perfectly understandable considering the importance we put on credit these days, from getting a credit card to buying a home or car. And when hard times strike, it’s only natural for a homeowner to want to save his credit. But how do you know how you’re your credit will suffer? Below are some of the most common questions on foreclosure and short sale credit impact, and what you can do about them.


How Will It Affect My Credit Score?

In either short sale or foreclosure, the reduction in credit score is a combination of your default and the sale itself. Generally, the losses are much lower in a short sale—some 100 to 300 points (sometimes less) compared to as much as 400 in a foreclosure. The further behind you are at the time of the foreclosure or short sale, the more your credit score will drop as a result.
How Long Does It Stay On Record?

In most states, a foreclosure stays on your credit report for up to ten years. Short sales can stay as little as two years or as much as seven, depending on your lender’s policies and the terms of the sale. One advantage to short sales is that you can negotiate with your lender as to how it will be reported, and if you get a good deal, you may even get them to remove the record sooner.

How Soon Can I Buy A New Home?
The law varies by state, but generally, you have to wait around 5 years after a foreclosure before you can buy a new home. Short sales have a wait time of two to three years, depending on who owns your mortgage. Fannie Mae allows you to buy a home after two years with a certain required down payment; this requirement is lowered the longer you wait to buy. If you did not have a 60-day default when you sold off your home, you can even buy a home immediately afterwords.


How Will It Affect Future Credit?

A foreclosure usually comes with a disclosure agreement which requires you to mention the event when you apply for another mortgage. Mortgage applications usually have a section where you have to indicate whether or not you’ve gone through a foreclosure or similar transactions, and this will affect the lender’s assessment. This happens less frequently in a short sale."

Short Sales and REOs: What’s The Difference?

"The troubled real estate market has led to an influx of distressed homes, which now make up as much as half of the inventory in some areas. Thanks to the attractive prices being offered, many buyers are snapping up homes they would otherwise not have considered. Unfortunately, not many of them really understand what they’re getting into. For instance, what’s the difference between a short sale and an REO—the two most popular types of distressed homes today? Here’s a quick guide to help you better understand your choices.



Short Sales and REOs

A bank short sale is a home that’s priced below the seller’s mortgage balance, because the balance exceeds its current market value. Banks agree to short sales because the only alternative is often foreclosure, which will cost them even more. REOs, which stand for real estate-owned, are homes that have gone into foreclosure but have been repossessed by the bank because they failed to get bids at the auction. Both are sold at significant cuts and are listed on the MLS just like non-distressed homes.

Selling Prices

A short sale is limited by the seller’s outstanding balance; it cannot be priced more than what is owed. Generally, a bank short sale sells for 85% to 95% of the market value, although some can sell for as low as 60%. REOs are priced according to market values as well, but banks can also take into account any repairs they’ve made prior to listing. Since banks sell REOs solely to get the property off their books, they are priced to sell fast and often offer good deals compared to a bank short sale.

Buying Process


This is probably the biggest difference between an REO and a short sale. In a short sale, the buyer makes an offer to the seller, but it’s forwarded for the bank for approval. The lender has the final word on whether or not the bank short sale can push through. An REO, on the other hand, is sold much like a regular sale, with the bank acting as the seller. They usually take faster because the bank is much more willing to sell.
Where To Find Homes


One can find a bank short sale or REO on the MLS and other mainstream listings, but they can be hard to distinguish from regular homes. Laws have yet to be passed requiring the identification of short sales and REOs. Until then, the best way to find a bank short sale is to look for wording that says a “third party,” meaning the bank, has to approve your offer. REOs can also be found in banks’ private listings, which are usually available on their websites."

5 Facts About Bank Short Sales

"Bank short sales have been well publicized as a way out of foreclosure, or even a shortcut to financial stability. But while it has helped thousands of homeowners, the bank short sale process isn’t as simple as it seems. Before taking the plunge, it’s important to know how bank short sales work and what results to expect. Here are some facts every seller should know before opting for a bank short sale.

Buyers Can Still Back Out

Bank short sale buyers are not required to commit to any properties. So even if you’ve taken their offer to your lender, they can still walk out of the sale if they find a better deal elsewhere. The best you can do is show your willingness to sell your home and complete your documents so that the sale moves forward faster.

Short Sales Affect Your Credit

Credit scores will fall after a short sale, both as a result of missed payments and the bank short sale itself. The good news is that it’s much less damaging than a foreclosure. Bank short sales can take 80 to 100 points off your credit score, while foreclosures can slash it by as much as 400.
You May Still Owe Money Later

After a bank short sale, there’s a difference between the amount the home sold for and the balance you still owe. Your lender will either forgive this amount or go after it in a deficiency claim. Most will only do the latter if you have any assets you can pay it with. More commonly, they will simply give you a 1099 form stating the amount of canceled debt. The IRS will record this as income and impose the appropriate taxes.
You Can Get Tax Help

If you’re worried about the tax consequences of a bank short sale, you may be covered by the Mortgage Debt Relief Act of 2007. This exempts short sale sellers from any tax dues on forgiven debt for incomes of up to $2 million. You are also protected from taxes on bank short sales if you were insolvent at the time of the sale.



You May Have To Wait To Buy A Home

Most bank short sales have a 2-year waiting period before the borrower can get a new mortgage. For Fannie Mae mortgages, the longer you wait, the lower the minimum down payment will be. However, if you were not in default at the time of the bank short sale, you can apply for a new mortgage immediately after closing."

The RPA-CA (California Association of Realtors Residential Purchase Agreement) generally allows you to back out of a short sale deal, provided you didn’t sign any addenda with the seller or his bank. Under the RPA-CA, you get to keep your contingencies—meaning you can cancel the contract as you please—unless you remove them through another agreement, such as a contingency removal or cancellation form.
What Happens To Your Deposit?

If you’ve already made an earnest money deposit, backing out under regular terms will allow you to get it back. It’s only a matter of the short sale seller giving you a refund. As long as the contingencies haven’t been removed, the state’s Notice to Perform and Cancellation forms assures that buyers don’t lose anything in the process.

Why Back Out?

One of the most common reasons to back out of a short sale is title problems. If this is the case, remember that title burdens, such as unpaid homeowner’s association dues, are usually paid and cleared at closing. At this time, the lender usually lets the escrow company settle any fees due and pay other lien holders, if there are any. The short sale will only close once all liens have been cleared from the home. For any other reasons, such as the home’s physical condition, it’s likely that the short sale seller will try to negotiate repair costs before letting you cancel.

When Should You Back Out?

Backing out of a short sale is pretty simple, but it can complicate things in the long run and should still be avoided. Before making any deals, make sure to get a good look at the home, from the physical condition to the circumstances surrounding the mortgage and default. A good short sale agent can help you find useful information on any short sale home, such as how many lenders there are and why the seller wants to get rid of it. If you do decide to back out, ask yourself why and consider alternatives before giving it up."