This information was given to me and I am passing it along. If you have a lien being held by Bank of America or Countrywide, this is good information to know when talking with your Realtor about what price to list your home for on a short sale.

I do not make any guarantee on the information below as Bank of America or Countrywide could change their policy at any time. It is always best to check with your lender and/or consult legal counsel when discussing your options.

I just received communication from Bank of America / Countrywide outlining their new Short Sale Policies which take effect immediately, including commission adjustments on some files. The communication came from the Risk Operations Manger of their Loss Mitigation department, here are the specifics:

1. Short Sales will be declined if the contract is below 90% of Bank of America's value. They did not specify how the value is established but generally speaking it will be either a BPO or appraisal(s).

2. If Bank of America is expected to take less than 50% of the outstanding balance, the Broker's total commission cannot exceed 4%.

3. Loss Mitigation associates now have the authority to approve short sales all the way down to 70% of the outstanding balance.

4. Officers and Team leaders now have the authority to approve short sales all the way down to 50% of the outstanding balance.

5. Anything lower than 50% of the balance must have Unit Leader approval.

"My thoughts are this is a step in the right direction where we have one of the largest lenders in the country disclosing ahead of time what they are willing and not willing to do and even how much they are willing to pay Brokers. If you have any pending transaction with Bank of America, these new policies will apply."

Please call or email me with any questions, I look forward to the opportunity to assist you!

Sincerely

Susan Wallace
Mortgage Loan Specialist
Jacob Dean Mortgage
571.283.1337
www.LoansBySusan.net