BofA bulking up short sale staff

[catleg]

Bank of America reported $35.7bn in nonperforming loans, leases and foreclosed properties in Q210, which is 15% above levels measured in the same quarter of last year.

These loans and properties increased more than $5bn in total aggregate balance since Q209. The total did drop by more than $200m worth of these loans and properties from the $35.9bn reported in Q110. They represented 3.74% of all outstanding loans, leases and foreclosed properties at the end of Q210.

BofA reported $3.1bn in Q210 earnings despite losses in its mortgage division. BofA is continuing efforts to keep these troubled mortgages out of foreclosure. Since 2008, BofA and the acquired Countrywide completed nearly 650,000 loan modifications. During Q210 alone, BofA completed 80,000 modifications, including 38,000 trial modifications that were converted into permanent workouts under the Home Affordable Modification Program (HAMP).

If a modification does fail, BofA is putting an emphasis on selling the home through a short sale ahead of foreclosure. At REO Expo 2010, Matt Vernon, the short sale and REO executive at BofA said that the bank added 1,000 employees to the short sale staff and will “do everything possible to liquidate property prior to foreclosure.”

Linky

[plantlvr]

So I'm in the middle of foreclosure, sale date sometime after Aug. 28th. Don't want/can't afford house but still living in it. Would a short sale benefit me in any way? I've read that a SS will hit my credit just as bad as a foreclosure and it's all for the banks benefit to do a SS...

[Billssuck]

From what I understand, SS are bad news for most sellers and especially for those of us already in a ch13. If they sell the house for less than what we owe, they will forgive the difference and then are required by law to send us a 1099 where the amount forgiven will be treated as taxable on our tax return. We can try to have that exempted on our tax return but you would need to make sure that you qualify to have that done.

If BOA approaches me with a SS, I will have to talk to a lawyer about it but my instincts are very leary...

[mrskal]

Well, on a positive note, 1000 more jobs created? In all seriousness, I dont really see any benefit for me to do a short sale, I dont want the house, I am filing Ch7, so no deficiency, and I dont want to deal with having people come to my house to look at it. I am moving out of state, the lawyer said the realtor (my own) wathces the house, and I dont have to do anything. Of course, he does the legal end, and they will make money. The only thing I can see, is that it looks like I tried to do something and not just walk, which may haunt me down the line when I want to purchase again. I am not sure what to do yet.