B of A is Doing What??

B OF A -

BofA Proposes Loan-Forgiveness DealPosted by GLOZAL on August 3, 2011 at 8:00am


.Bank of America Corp. is having preliminary conversations about a home-foreclosure settlement that would reduce the amounts owed by some of its troubled borrowers in exchange for a broad release from legal claims against the lender, said people familiar with the talks.

The largest U.S. bank by assets is discussing the proposal with state and federal officials who are prodding the country's biggest banks toward a multibillion-dollar deal to atone for foreclosure errors. It isn't clear if the talks will result in a final deal, these people said.

The conversations illustrate how the Charlotte, N.C., lender is trying to get its arms around an array of woes linked to the 2008 purchase of mortgage lender Countrywide Financial Corp. That $2.5 billion deal saddled the bank with hundreds of thousands of delinquent borrowers and thrust it into the middle of the foreclosure-paperwork crisis last fall.

In late June, BofA announced an $8.5 billion settlement with a large group of mortgage-bond holders who lost money on mortgage-backed securities purchased before the U.S. housing collapse.
Bank of America and four other big banks have been in talks with state and federal officials about the ultimate cost of ending the foreclosure controversy since March. Progress has been slowed by a squabble among the banks over how to split the tab, with Wells Fargo & Co. telling government officials it should pay less than Bank of America or J.P Morgan Chase & Co., said people familiar with the matter.

As the discussions dragged on past the mid-June target set by U.S. officials, Bank of America began pressing officials for a speedy resolution, and it put forward its principal reduction proposal in one-on-one talks with state and federal officials. Meanwhile, negotiations continue with the banks as a group.

Bank of America has told officials it wants protection against future litigation relating to mortgage servicing, said people familiar with the situation. In exchange it is willing to agree to a program in which troubled borrowers would have to prove financial distress to qualify for a writedown of the principal owed on their mortgage.

The principal amount would have to be $1 million or less in certain geographic areas, one of these people said, and a reduction would apply to the bank's own mortgages and those its services for private investors. Borrowers who don't qualify for the reductions would still be eligible for transition assistance.

The more modifications the bank agrees to, the less it will pay in cash as part of an eventual settlement, one of these people said.

It isn't known if other banks, which are having their own one-on-one conversations with state and federal officials, have put forward similar proposals.

WHY ARE YOU STILL WAITING TO BUY A HOME OR INVESTMENT PROPERTY??

Housing Affordability at Highest in 20 Years


Daily Real Estate News
Friday, August 19, 2011

Housing affordability continued to be near record highs in the second quarter, hovering near its highest level in the 20-plus years it has been recorded, according to the National Association of Home Builders/Wells Fargo Housing Opportunity Index.



About 72 percent of all new and existing-homes sold in the second quarter of the year were affordable to families earning the national median income of $64,200, according to the index. The record high remains 74.6 percent, which was reached last quarter.



"At a time when home ownership is within reach of more households than it has been for more than two decades and interest rates are at historically low levels, the sluggish economy and the extremely tight credit conditions confronting home buyers and builders remain significant obstacles to many potential home sales," says Bob Nielsen, chairman of the National Association of Home Builders. "That said, however, some housing markets across the country have stabilized and are beginning to show signs of a budding recovery."

NEXT TIME YOU THINK ABOUT SELLING YOUR OWN HOME- THINK AGAIN!!

CHECK IT OUT!!!

ForSalebyOwner.com founder uses agent to sell homePosted by GLOZAL on August 10, 2011 at 6:07pm




.NEW YORK – Aug. 10, 2011 – The founder of ForSalebyOwner.com, a popular for-sale by owner (FSBO) website, used a real estate broker to help sell his 2,000-square-foot, two-bedroom New York apartment after it lingered on the market for six months.

Colby Sambrotto, founder and former chief operating officer of ForSalebyOwner.com, tried to sell the property FSBO by listing it online and through classified ads – but after six months of sitting on the market, he sought the help of a real estate broker.

Broker Jesse Buckler told Sambrotto the condo was priced too low and wasn’t attracting the right buyer for the condo.

“At first he wouldn’t let me increase the price,” Buckler said. “I told him I know what I am doing – the market is picking up.”

The condo soon attracted multiple offers and ended up closing for $150,000 more than the original asking price.

WOW!!! NEXT TIME YOU MAY THINK ABOUT SELLING YOUR OWN HOME - THINK AGAIN!!!