I posted this original "report" a few days ago and I basically said, Yea right I'll believe it when I see it. We'll I ready to say that so far it looks like they are actually going to do something that they said they were going to do. Bank of America and the other major bank players were all talking about doing Loan Mods the "Right Way" (You know reducing the principle balance) and cutting out the second mortgages. Pipe dreams right? It was always them saying the right things but never following through with them. It wasn't until the beginning of this year when all the major players (the Mega-banks) were slapped with fees by every states Attorney General, for the Robo signing scandal of years past.
Last month Bank of America sent out thousands and thousands of these letters, not just in Kissimmee or Greater Orlando area, but all over Florida and the country offering people to forgive the second mortgage. Everyone's thought was Yea right, what's the catch? My fear was that the owners would have to divulge all their financials, pay history, living status, etc. and probably a pint of blood and urine sample to boot. So then they would have all your information and could really determine your financial status. They could have come back to these people and stated that "Oh you have plenty in your 401K so you don't qualify" or "We see that you just financed a new car so you don't qualify" or something like this " We see you have about $7000 in your bank accounts so you won't qualify for this program". The big issues or what I call the Scary part of all this was that with this info that they now had they could also say the "You won't qualify for any of our programs including a Short Sale". That would mean that Foreclosure would be your only out or a Deed in Lieu, which is the same thing.
Yesterday I get a call from one of our sellers in Kissimmee, that we are short selling the property. They got this letter last month I said don't bother everyone is getting it. Just like all those Loan Mod letters. They said that Bank of America called them again and said that they only had 10 days to file for this or they are out. I asked if they had to send any financials, and they said NO, They wanted Nothing, they were already qualified. Then they told them that they see there was an active Short Sale and that this program would take a minimum of 3 months to complete and once started they could not stop or they would not finish the program and would Always Owe The Balance To Them. This means No Chance for a Full Waiver of Deficiency! That is Big and Important to know. My words to them “Go For It, You Have To". I then got on the phone and cancelled the Short Sale until they completed the process. The agent on the other side was in full agreement.
So, to all my Kissimmee, Saint Cloud and Greater Orlando clients and friends, if you got one of these letters, CALL THEM NOW before time runs out. Or maybe your one of those people that are still in denial and just threw the letter in the trash like all the others from the banks. If that's the case and you or someone you know, has a second mortgage with Bank of America, call them today to see if you qualify for this program.
La Rosa Realtor and Short Sale Trainer and Property Owner Advocate