Helping Homeowners Avoid Foreclosure in Roseville and Sacramento

How Does the DOJ Settlement Affect My Completion of a Short Sale with Bank of America?

Posted on Nov 19, 2012 in Roseville and Sacramento Short Sale FAQs

Hi, this is Mark Peek with Keller Williams Real Estate, your Roseville and Sacramento short sale specialist. Today I want to talk about the DOJ Settlement and Bank of America. So if you have heard of the DOJ Settlement, where multi state attorney general sued many of the top servicers out there. Bank of America was of course the largest servicer. As part of that settlement, they agreed to put forth about 7.6 billion dollars towards principle reductions and workout solutions to homeowners who were in trouble. As of today, because there are some incentives from the DOJ to accelerate this, Bank of America has already spent almost 5 billion dollars of that. So if you haven’t received one of these notices already that they are going to write off principle reduction, time is probably about right out, right now.

Most of the folks that we have seen get principle reductions; typically they were second liens that have been delinquent for some time. Those have been wiped out, but the problem is most of them still have first liens that are still underwater and I’ve not seen any principle reductions on those in addition to the second lien wipe-outs. So there may be some out there, I just haven’t seen it with the folks that have approached me or folks that we are working with and are underwater.

so if you are considering a Bank of America short sale, and are waiting for this DOJ principle reduction settlement, I’m going to say it’s probably about done and you should give me a call. I would love to talk with you about what your other options might be. Again, I’m Mark Peek with Keller Williams, your Roseville and Sacramento short sale specialist and I’m here to help. I look forward to speaking with you soon. Thanks and have a great day.

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