Front Page News from BofA – Short Sale Power Hour 03/30/10
March 30, 2010 / /
Kevin and Fred of Group 46:10, Arizona’s Premier Short Sale Team talk about the “big” BofA news about principal reductions…..lets NOT blow this out of proportion
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About the Authors
Kevin Kauffman & Fred Weaver
Kevin and Fred the founders of Group 46:10. Over the last 10 years Kevin and Fred, and their team have closed tens of millions in real estate all over the country and have created some of the best training for agents in the market. Kevin and Fred are also highly sought after teachers whose work has helped agents all over the country build their own next level real estate business.
Wow! Flying Fred Weaver enters the picture!
Great information about the AWESOME BofA program.
Thanks!
You guys rock! Thanks for sharing!!
Thanks for breaking down a confusing BofA press release into terms that the average person can understand. You guys rock!
I enjoyed the energy in your video but I felt compelled to leave a few comments.
1) This was not a voluntary program by BofA. This was the result of a legal settlement in a lawsuit against Countrywide on predatory loans. The settlement was for BofA to reduce the principal balance on those borrowers that had particular criteria on their loans i.e. Most of Full Spectrum Loans (sub of CW) 2/28 teaser rate loans, Pay Option loans with margins exceeding certain metrics. The analysis by BofA was that it would require $3B in principal reductions. Based upon the LTV qualifier that meant that it affected $10 Billion plus in current face value of mortgages. BofA does not have the proper reserve requirements for those mortgages which will not be considered impaired.
2) This is not new news. 2 yrs ago a Identical law suit was settled with the National Association of Attorneys General requiring $8Billion in principal reductions. (How soon we forget) Where was the fan fair for that one? The main investor in those loans, Greenwich Capital, file suite promptly for $80 Billion requiring that CW a.k.a. BofA to repurchase them.
3) You are correct that it leaves only whole loans held by BofA or remaining subsidiaries that BofA can apply this methodology to.
What you should be asking is, why was this such big news and what happened to the Government’s announcement that it was going to start buying back underwater mortgages to allow for principal reduction.
Kevin W. Hardin CMB, CMC, CMPS
Director Mortgage Mediation Group
Thomson Conant, PLC
Counselors At Law