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."

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."