West Sacramento Short Sale Information – AG Settlement Update

Today let’s talk about the progress of the Attorney Generals settlement with the Five Largest Lenders

 

It was reported recently by Jon Prior at Housing Wire that both Wells Fargo and Bank of America have reported completing nearly 35% of the homeowner relief required under the 25 billion dollar settlement reached earlier this year. Both Wells Fargo and Bank of America indicated they would fulfill their commitment within the first year.

First off congratulations to Wells and BofA for taking an aggressive stance on getting this behind them.

So how does this relate to you and West Sacramento Short Sales in general? Simple. It is and always has been about the money. This is not bad or good it just is. The banks get different credit for the actions they take to fulfill their obligation under the agreement.

For a West Sacramento Principle Reduction they get one dollar credit towards the settlement for principle reductions on their own portfolio loans. Now we know most banks don’t hold their own loans. With that said they only get 45 cents credit if they reduce principle on a loan held by a private label security. Here is where it gets interesting. They get a full dollar credit plus another 25 cents if they do it in the first year, for every dollar forgiven under a West Sacramento Short Sale or payment made to settle a second lienholder in order to close the West Sacramento Short Sale.

Of the 10.5 billion of relief that has been provided, 8.7 billion has been through short sales, followed by $750 million for principle reductions. With the amount of credit given for a West Sacramento Short Sale vs. West Sacramento Principle Reduction, you can see why the banks are motivated to complete a West Sacramento Short Sale and to complete it within the first year of the agreement.

With the favorable tax laws expiring at the end of this calendar year and the banks being motivated, doesn’t it seem like it’s time to pull the trigger on your over encumbered West Sacramento property?

Is a West Sacramento Short Sale Right for Me?

To get a better idea of when your West Sacramento home will be worth what you owe, log in to www.shortsaleandloanmod.info for a free estimate or call me today for a free no obligation consultation or for the latest West Sacramento short sale information. Call me today and sleep better tonight; you’ll be glad you did