Bank of America working on short sale practices. Message to BoA… Feed the animals.
Kristin and Dean recently went to a seminar put on by Bank of America discussing the past, present and future of short sales. Bank of American has admitted their mistakes in the past. It would be kind of hard not to admit them, just search for short sale nightmare stories and you are going to run hundreds of horror stories and most of them will involve Bank of America.
Two issues Bank of America made it clear they did not really want to discuss were principle reductions and strategic defaults. They have basically said any strategic default is just going to declined unless the seller is willing to come to the table with money. We understand why they say that, they do not want to encourage people to walk away, but at the same time they are going to need to deal with reality in Arizona.
Someone in the East Valley who wants to short sale their house as part of a strategic default plan is going to either be allowed to short sale their house or they are going to let it go to foreclosure. If that house goes to foreclosure they are likely going to receive as much as 20-30% less for that house after all costs are factored. It is fine to stand on principle, but at some point you need to realize in a state with anti-deficiency laws it is going to make sense to do what you can to stem losses.