Bank of America resuming foreclosures, so does GMAC

The foreclosure hold that was supposed to last for a year and half ended much quicker for Bank of America when they announced Tuesday that they were going to reopen more than 100,000 foreclosure properties in 23 states, claiming that there have not been significant problems found in the preliminary investigations of its files.  GMAC followed suit but would not disclosure the number of foreclosures that it was going to re-open.  Colorado is not one of the states where they are resuming the foreclosure process, so for now Eagle county is still part of the Bank of America halted foreclosure process.

Buying bank-owned or short sale property

Foreclosed,  bank-owned, distressed?  Whatever the term you are using these days, there is a lot of information to process about those types of properties.  Sometimes, these properties can be in xcellent condition and in very desirable locations. Homeowners in every price bracket are affected by the economy. Bidding wars will occur in this type of environment. The key to streamlining the loan process and avoiding surprises is to work with an experienced real estate agent and a lender who regularly handles distressed property transactions. The timeline for short sale transactions is tightening and REO transactions tend to occur within a faster time frame than the traditional home-buying process.
Foreclosures are happening in record numbers and sellers are very motivated to get through this quickly.
 
There are basically two categories:
 
Foreclosures or REOs (real estate owned), which have become the property of the bank due to the
homeowner failing to pay the mortgage for several consecutive months.


Short sales or “pre-foreclosures,” where agents negotiate with banks to accept a sales price and loan payoff that is less than the mortgage amount. Short sales occur in instances where home sellers are “underwater” on their mortgage, which means that the amount of their current mortgage exceeds the market value of the home.

While the average distressed property sold for 20 percent below current market value, the discounted purchase price on short sales and REOs tends to range between 10 and 40 percent.

40 percent of survey respondents indicated that the desire to “stop paying rent” was a prime motivator in the property home purchase. Regardless of the market, a home is a solid investment. Distressed properties have simply lowered the financial barriers to entry.

For more information on programs available for assistance with this difficult task visit http://www.homerescueinstitute.com/.