Bank of America relaxing payoffs with short sales

Times may be getting easier for the Short Sale Specialist. Investors looking to acquire houses through short sales just might be in for some good news.

One of the largest holders of second liens in the U.S., the Bank of America, says it's relaxing its policy on payoffs connected with short sales

....Bank of America had been among the least cooperative of all banks in agreeing to short sale payoff terms, according to industry critics.

The company's policy was blunt: Pay us 10 percent of what the homeowners owed on the equity line balance or second mortgage, or we won't sign off on the short sale, which is necessary for the deal to go through.

Now the bank has adopted what spokesman Terry Francisco told Realty Times is "a less arbitrary, more rational" policy.

"What we're saying (to short sale proposals) is -- give us an opportunity to participate and gain at least some of the savings" that will go to the first lien holder -- the primary lender on the property -- by avoiding the high expenses and losses of a foreclosure, according to Francisco.

Bank of America is now asking for five percent of the sale proceeds on the short sale, net of realty commissions, closing and other costs.......

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