Bank of America DOJ Settlement – Avoid Short Sale – Foreclosure – Crestview FL
If you have a Bank of America mortgage and are facing foreclosure, part of your principle may be forgiven if you qualify for the Bank of America – Department of Justice Settlement. This settlement was negotiated between Bank of America and DOJ to make reparation for past lending practices, primarily for prior Countrywide and Merrill Lynch mortgages. Certain Florida homeowners will qualify for mortgage modifications, principal forgiveness, forbearance, or extinguishment of their home equity lines of credit.
I just had such a success story with a Crestview Florida home seller whose Veteran’s Administration (VA) mortgage was reduced by over $60,000, or 25% of the balance, as part of this program. He was notified of the opportunity during an attempt at VA Compromise Sale (type of short sale) of his Crestview home. We had just received a contract for purchase, when the DOJ settlement offer came from Bank of America. They proposed that he enter a trial mortgage payment period at a reduced interest rate and succeed at making payments for three months. Even though this was a stretch for him since he was in a VA Compromise Sale situation, we figured out that at the new principle balance, he could sell his Crestview home and actually make a profit! He accepted the offer from Bank of America, and we changed the terms of the purchase and sale agreement to remove “short sale” and add a contingency for the successful completion of loan modification and principle reduction. The buyer was more than happy to wait the 90 days, as that is about how long a short sale would have taken and the risk of approval was far less than with a short sale. (I was happy to have less of a headache, too, without all the short sale paperwork!)
The question came up – “Could the seller actually put his property on the market and receive an offer during the DOJ Settlement trial modification period?” The answer was “yes” from Bank of America. Sellers who receive this offer might be struggling to make their mortgage payments and have actually stopped making them, contemplating foreclosure or short sale. This DOJ Settlement with Bank of America is a financial windfall for these sellers because it will significantly boost their financial situation.
Do you qualify for the Bank of America – Department of Justice Settlement in Florida? You will need to call Bank of America at 1-877-488-7814 and ask them. If not, there may be other solutions for you to avoid foreclosure, reduce the impact on your credit, and possibly save your home with a different type of modification, or by doing a short sale.
Questions?
It’s Wendy… It’s Sold!
Wendy Rulnick, Broker, Rulnick Realty, Inc.
Call 850-650-7883 ext 204
Email Wendy: [email protected]
Wendy Rulnick, Broker, has been featured in “Kiplinger Personal Finance Magazine” and “Florida Realtor Magazine”. Wendy Rulnick sells real estate in Destin, Santa Rosa Beach, 30A, Miramar Beach, Seagrove Beach, Watercolor, Sandestin, Seaside, Crestview, Rosemary Beach, Mary Esther, Shalimar, Fort Walton Beach, Niceville, Bluewater Bay, Navarre, Panama City Beach.
