Video Blog (vlog) by REALTOR® Jennifer Klein: Bank of America, Notice of Intent to Accelerate explained by Jennifer Klein (916)230-3880, Or email JK@RosevilleAndRocklin.com.
Bank of America has started issuing a , “Notice of Intent to Accelerate,” typically to loans that were previously Countrywide Home loans. Countrywide home loans were purchased by Bank of America and that is who you now make your mortgage payments to. If you’ve received one of these notices I’m fairly certain you are not current on your mortgage and for most, severely behind. So you’re probably wondering what this means in the scope of your foreclosure process.
Rest assured you won’t be losing your home in 30 days, probably not even 60, but do expect your Notice of Default to be delivered shortly thereafter. A Notice of Intent to Accelerate is essentially the banks last attempt to let you know that you are nearing the end of your “grace period” and you are going to incur more fees, such as legal fees affiliated with your Notice of Default and the remaining of the foreclosure process. Hopefully, if you’ve reached this stage you have explored the best option for yourself and your household. Whether you are considering a short sale or foreclosure a notice of Intent to Accelerate is a time to “get real” about your situation.
After you have received your Notice of Intent to Accelerate, roughly 60 days later, you will receive a Notice of Default. Your Notice of Default triggers the foreclosure process. Typically 60-90 days later you will received your Notice of Trustee Sale. While there is very little consistency from the banks, there’s no way of knowing who will be on time or who might slip through the cracks. What I can tell you is, that, one of my clients was 14 months behind on their mortgage before they received their Notice of Intent to Accelerate. After that it was 45 days until their NOD. Another one of my clients was 11 months behind and just out of a Bankruptcy and they received their Notice of Intent to Accelerate.
No matter what you choose to do, be sure you are aware of your time lines. Talk to a professional who can help with this process. It will not go away. Please call (916)230-3880 or email Jen@JenKlein.com.
Bank of America announced today that they are going to be cutting principal balances for homeowners. The homeowner must be 60 days behind and 120%+ underwater. Bravo! Bravo! This is great news and a great effort! In an attempt to rectify some of the adjustable rate mortgages that were levied to millions of Americans, they are now going to offer serious principal reduction, allowing homeowner’s to reduce balances to the homes current market rate. Homeowners may have some serious relief to the once trendy pay option arm loans and the other ample programs that have caused homeowner’s so much grief.
Perhaps this is an effort to console the “strategic defaulters,” which are a huge element of this foreclosure wave. A strategic defaulter is someone who realizes they may never recoup the amount of equity lost when the market tanked. Typically someone who understands the nature of the current mortgage game and realizes the long term health and wellness of both their credit and financial situation may recover more quickly than the housing market. For these people a foreclosure or short sale has been their remedy. Which until now, was a viable solution.
I would hope with this BofA movement on principal reduction it will influence other banks, both large and small to take larger initiatives to rectify the current mortgage crisis. We’ll see how this pans out. I encourage homeowner’s to give it a try. Be careful of the loopholes and ask a lot of questions. Feel free to give me a call to discuss the challenges this may present in a future sale or refinance. Jennifer Klein (916)230-3880 or email JenKleinSac@gmail.com.
Last week Bank of America announced the new online Short Sale management system, Equator. Which to people might mean speedier more up to date management of data. The system was originally used as REO Trans to manage REO (bank owned) properties and now has been adapted to accommodate Short Sales. While it’s too early in the process to comment on function I can comment on form.