Bank of America Loan Modifications with Principal Reductions
The long awaited principal reduction loan modifcations are not - I repeat - are not merely a rumor, nor a pie in the sky, it can't happen to me kind of reality. Â I'm happy to say that one of my clients was amongst the first to receive a significant ($170,000) principal reduction offer on his B of A loan modification. Â Â
This particular client has been in loss mitigation for over two years. Â He has not made a single payment in two years, until today, when he made his first trial period modification payment. Â He has been turned down for B of A Modifications three times, and we were standing by, in case this modification attempt failed, ready to do a short sale. Â And the letter finally came. Â Â
So, it would seem that the tides are turning. Â The recovery process has been painfully slow, and many may say, "too little, too late" for the millions of Americans who have lost their homes already. Â And those people would be right. Â But we are here - how we got here is a lesson at best, but what we do going forward will determine both the length and scope of the final toll of this heinous financial crisis. Â Â
Today, I attended one of Bank of America's large-scale Short Sale Forums - mini-seminars currently being held across the country which outline their new short sale policies and procedures. Â We were given new tools and "insider access" Â for escalation of short sale issues (limited to forum participants only), and taken, step by step through the new programs, requirements and processes. Â The idea is to reduce the vast majority of short sales from 3-6 months down to 30 days from application to a pre-approved price and terms agreed to by the investor so that a "normal" sale can take place from that point forward. Â Â They have instituted some very good new policies and procedures. Â The system isn't perfect, and they will, undoubtedly, continue to make tweeks and changes as they go forward, but I do have to applaud B of A for taking a leadership role in their approach to improving the short sale process. Â This level of bank/agent communication...having real tools in place to handle the inevitable problems and find a path to resolution inherent in short sales has been a long time in the making, and we, as both agents and consumers are hoping to be seeing a little light at the end of the tunnel.Â
Let's all collectively hope that this new light isn't actually an oncoming train!