According to documentation provided directly from the lender, Bank of America is offering a new Cooperative Short Sale Incentive Program, which can provide a seller’s incentive from $5,000 to $30,000! It remains to be seen how often the top end of the incentive will be offered to sellers, but this clearly reflects a shift in the direction towards supporting short sale efforts as opposed to pursuing foreclosures. That shift alone is good news for sellers and buyers in the current housing market. Sellers benefit from the potential cash at settlement and a faster short sale of their underwater property. Buyers benefit from the increase in inventory that would not have otherwise occurred from sellers who are incentivized to put their underwater homes on the market. If you are interested in short selling your property, you should speak with an experienced attorney regarding the process and your possible options.
–Suren G. Adams, Broker and Attorney at Law, Adams Realty, LLC
According to guidelines published by the Maryland Real Estate Commission on July 22, 2013, real estate agents are acting outside the scope of their license when negotiating short sales with mortgage lenders. The Commission specifically stated that “since the scope of the real estate license is limited by definition to assisting clients in the purchase, sale or lease of real property, the Real Estate Commission and the Commissioner of Financial Regulation consider that negotiation of a short-sale deficiency agreement or any other type of mortgage collection forbearance with a seller’s mortgage lender or servicer falls outside of the scope of a real estate license.”
Agents may still market and list a house for short sale, but should not negotiate terms with the seller’s lender to fall within the protection of their license and E&O policy. Agents are now required to inform sellers that the seller must either personally negotiate with the lender or hire a Mortgage Assistance Relief Service Provider or a Maryland attorney (such as Suren G. Adams, Adams Law Office, LLC) to conduct the negotiations. The full guidelines can be found by clicking here: MD Real Estate Commission Short-Sale Guidelines
I have been getting more and more calls from my former bankruptcy clients, who have been working hard on rebuilding their credit and savings post- bankruptcy discharge, asking when they can qualify to buy a home. The answer used to be 2-4 years, but there are several mortgage companies out there who have been opening up financing for post-bankruptcy clients to as soon as 1 day after discharge (see https://www.peoplesbankmtg.com/mortgage-after-bankruptcy/).
There are specific strategies you can use to rebuild your credit score and if you actively save the money that you had been spending on debt prior to your bankruptcy, you can be in an even better position to get a good rate when financing the purchase of your home. Let us know your situation and we can connect you with the best strategy for taking advantage of the fresh start you received from your bankruptcy discharge.