Short Sale Updates And Information
The event comprised a panel of Short Sale Directors from Bank of America, Chase and Wells Fargo. The panelists offered up some interesting facts and figures. The Bank of America panelist mentioned that 1 in 4 homeowners is a distressed homeowner. She did not offer an explanation of how B of A determines a “distressed homeowner”.
According to Chase regional Homeownership manager Andrew Hall of the 8 million existing Chase loans about 10 percent remain in default.
The Chase panelist said that the lender takes a period of 26 months from default to foreclosure which in banking speak means that they make an attempt to keep homes from foreclosing whether that be for a loan mod, short sale or other alternative.
Now for the updated program info-
Beginning in November Chase (like B of A and Wells Fargo) will jump to the Equator system. For many agents that comes as a good news bad news announcement. More technology, less humans.
New Bank Short Sale Programs
In the more immediate future (Sept 1st) will offer two new programs.
1- Chase will offer “quid pro quo” for Priority Partner Program for short sales.
Agents will need to have a relationship with a Chase loan officer and will have to give the Chase loan officer at least two purchase loans to be considered for program.
Agents can also be considered for the program if they give for example 10 leads, re-fis, or the like to the Chase loan officer. Each Chase loan officer will have only 3-5 realtor partners. Note that Realtors will need to qualify with relevant distressed property training which includes short sale certification from one of the following: CDPE, NAR, Equator, and 5 Star.
As far as regions, Realtors can use 15 zip codes that they have expertise in conjunction with the program.
2- Chase will also offer a Priority Listings program in Chase branches.
Listing agents can display their listings in Chase branches and take part in first time buyer programs through this program.
For the other two banks, Wells Fargo will offer 7% commission for some short sales that close within 30 days. Go get your cash buyers. Bank of America continues to work on a pilot program where the bank works with agents who reach out to distressed homeowners who the bank cannot reach or contact.