Bank of America & Wells Fargo Lot Loan Short Sales

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As many of us along Myrtle Beach’s Grand Strand know during the real estate boom there was not a more popular purchase than that of a residential home sites.  Now, we are all well aware of the fact that nothing has depreciated faster or harder than these same home sites.

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I have specialized in short sales for the last 5 years and want to inform you of a disturbing trend with Bank of America and Wells Fargo as it relates to the short sale of these distressed assets.  Wells Fargo Lot Loan Short Sale Department is approving short sales but only reducing the outstanding principle balance to 90% of what is owed.  Bank of America is requesting an unconscionable cash contribution from Sellers to approve short sales.

Their logic is that they do not have to deal with the scrutiny of “putting a family out in the street” so they can take a harder line on these assets.  This is flawed logic on many levels, flawed in the sense of the financial duress the cash contribution and or remain loan balance creates in the borrowers lives.  Moreover, what about their obligation to get the highest yield for their stockholders?

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See below a letter to the CEO’s and VP’s of both companies, should you have any contacts with these companies feel free to forward this article…