My very skeptical thoughts on this…
- Short Sales are successful, however, BofA does not want to pay the commissions, pay toward the 2nd and 3rd lien holders, past due taxes, etc…that is required in a Short Sale and in the HAFA program.
- Bank of America is going to get to these borrowers before they hire an agent to complete the short sale saving BofA these costs.
- BofA is seeing the writing on the wall…HAFA is mandated by the Government and now they have to complete short sales or get slapped on the hand.
- Unemployment is growing leaps and bounds…17% at last count…the highest since The Great Depression.
- The principle being reduced are to todays standard…not the Future Value as housing prices continue to decline…i.e. Riverside, SB, Clark County NV, S. Florida, NC, AZ, etc…
- It does not address the 2nd and 3rd liens…these blood suckers are 50% of the problem.
- It does not address the past due taxes and HOA liens.
Bank of America’s new mortgage program for certain underwater borrowers, which incorporates an earned principal forgiveness approach into the loan modification equation, has recently been implemented. The North Carolina-based bank has already mailed out an initial round of letters notifying customers who may qualify.
Upon review of these applications, the first trial offers for BofA’s principal forgiveness program could find their way to distressed borrowers as early as the second half of June. Bank of America says the principal reduction plan, which was originally announced in late March, is being offered to homeowners who owe “considerably more” on their loan than the current value of their home, when the loan is being considered for restructuring through the government’s Home Affordable Modification Program (HAMP).
Source: DSNews.com, Carrie Bay, (06/02/2010)
