Archive for June 10th, 2010

BofA makes Short Sales a Top Priority

Thursday, June 10th, 2010

Matt Vernon, short sale and REO executive at Bank of America, has made it very public and very clear that his bank has made a strategic business decision to give the newly improved short sale process the priority that many in the real estate industry have long felt it deserved. Speaking on a recent panel discussion at the REO Expo in Dallas, Vernon made these comments …

“We’re going to do everything possible to liquidate property prior to foreclosure. REO will still be available, but we will do everything we can to do short sales.”

The Las Vegas real estate market has been starved of foreclosure inventory for the better part of 18 months now, so this is welcome news indeed. It’s just incredible to have a situation where so many qualified and motivated buyers cannot secure Las Vegas properties because of a massive and absurd supply and demand imbalance. The technical and administrative transformation of the short sale process, combined with the HAFA program from Treasury, has given new impetus to the willingness of all participants to re-examine the feasibility of a short sale transaction. Las Vegas short sales are rapidly becoming incentivized in ways that could scarcely be imagined only six months ago. The Michelle Sterling Team is fully on board and the recent news that Wells Fargo and Wachovia are joining BofA on the Equator system only increases our enthusiasm.

Current Conditions: Las Vegas Short Sale Market

Thursday, June 10th, 2010

The new Equator administrative platform, initially conceived to standardize and streamline the short sale process, actually appears to be working. The nationwide system has just passed the 200,000 mark for short sale transactions uploaded in just over seven months time. This is highly encouraging news for the Las Vegas short sale segment of our market, which is expected to grow substantially over the next few years, if not longer. Equator is also developing a new version of their system designed specifically to interface with the recently introduced Fannie and Freddie HAFA programs taking effect later this summer. The frustration level with the short sale process (for both buyers and sellers) actually has a real chance of subsiding in future, as completion times shrink from six months to ten weeks in many cases.