In today’s market it’s hard not to see all the for sale signs everywhere. From Gilbert to Tempe, from Fountain Hills to Paradise Valley. Even Scottsdale has seen a price decline of more than 45% since 2006. Still, bank properties comprise about 15% of the current real estate market, and short sales make up another 47%. In these difficult times, who comes to the rescue of the rescue? Bank of America? JPMorgan Chase? Wells Fargo?
Many of these banks do not seem to identify with the direct financial struggles of today’s real estate market. Without the proper help, many homeowners will face foreclosure unprepared and uninformed about the future impacts of this path. From what I can see, these banks don’t seem to be giving in to homeowners, and it looks like foreclosure predictions won’t peak until next summer.
Bank of America appears to be trying to improve the way it handles short sales through its new Equator system. They have been trying to revamp the way they work with owners in difficult situations. Make sure you are prepared for the worst if your loan is a Home Equity Line of Credit (HELOC), as these are not included in the Debt Relief Act of 2007. In most cases, some banks will go after the homeowner in both a foreclosure and short sale if they do not sign a bond release beforehand. For whatever reason, many banks seem unwilling to help either new buyers or existing sellers who are in legitimate financial difficulty.
In order not to fall into the category of foreclosure, you must be well informed about your different options. The first step would always be to speak with your attorney and/or CPA to find out what options you have.