BOA Reversing: Cash for Keys up to $20,000

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Bank of America Offering Cash for Keys
Posted on October 11, 2011 by Mark Stopa
http://www.stayinmyhome.com/blog/?p=1819Saturday’s St. Pete

Times had an interesting article about how Bank of America is offering cash to homeowners who are delinquent on their mortgage payments. http://www.tampabay.com/news/business/realestate/article1195778.ece
Instead of pushing for foreclosure, BOA is offering cash in exchange for the homeowners consenting to the home being sold to a third party for less than the amount owed, i.e. a short sale.

In an industry littered with horror stories and negativity, this is good news. If you’re skeptical, don’t be – this is a natural consequence of foreclosure defense attorneys like Stopa Law Firm making it difficult for banks to foreclose through the court process. In other words, take a second look at my website, written in early 2008, including this sentence:

If your bank cannot win its foreclosure lawsuit against you quickly (because you are fighting for yourself and defending your rights), it may be willing to negotiate with you in ways that it otherwise wouldn’t…

I foresaw resolutions like this years ago. It only makes sense. If foreclosure defense attorneys are continuing to make it difficult for banks to win in court, and the court systems are so clogged that cases are moving slowly, it makes perfect sense for banks to try to find a way to avoid the court process and resolve these disputes in other ways. Giving homeowners facing foreclosure cash payments in exchange for them consenting to a short sale is an obvious solution for the banks. It’s a “win” for both sides – the bank gets the property sold and the homeowner gets money to move elsewhere.

As the article suggests, I’m sure this solution won’t work for all homeowners. For instance, the article notes that BOA isn’t intending to waive a deficiency judgment in all cases. That’s ridiculous – it doesn’t help to put a few grand in your pocket if the bank can get a judgment against you far in excess of that amount. This why we all need to keep fighting. The more difficult we make it for the banks to foreclose, the more inclined they’ll be to give homeowners a fair resolution. And make no mistake, that’s what’s happening here – the banks don’t care about being fair to homeowners; they care only about avoiding the time and expense associated with foreclosure lawsuits.

Here’s the article. …

Bank of America is offering up to $20,000 to select Florida homeowners willing to agree to a short sale instead of entering foreclosure.

To sweeten the deal further, the nation’s largest lender will consider waiving the deficiency on the loan, which allows homeowners to sell the house for less then they owe without having to make up the difference to the bank. It can save homeowners thousands of dollars.

Not every Bank of America customer in Florida will be eligible for the program, which pays a minimum cash incentive of $5,000. It’s targeted toward home­owners who cannot afford their mortgages.

To quality, the short sales must be submitted for bank approval by Nov. 30 and must close by Aug. 31. Sales already under contract are not eligible; neither are properties outside of Florida.

This is a “test-and-learn” program being rolled out only in Florida because of the higher foreclosure rates than other parts of the country, said Christina Beyer Toth, a Tampa-based spokeswoman.

Florida is seen as a viable market to gauge short-sale response when presenting home­owners with relocation assistance, she said. If successful, the plan could expand to other states.

The bank notified select Florida real estate agents this week about the offer.

“It will get a lot of people off the fence about wanting to sell their home,” said Steve Capen of Keller Williams Realty in St. Petersburg. “This makes sense.”

What’s in it for Bank of America? It saves attorney fees, court costs and property taxes by avoiding foreclosure. It also speeds the process of getting bad loans off its books and gets the properties back on the market faster.

Capen, who specializes in short sales, plans to heavily market the offer to clients. But he cautioned that homeowners shouldn’t get overly excited because many of these plans have restrictions.

“It will only help a fraction of the people,” he said.

Homeowners get the cash after the short-sale deal closes. A caveat: Homeowners might have to pay income taxes related to the deficiency waiver and the cash payout.

The cash payouts give home­owners a reason not to trash their homes or strip them bare before moving out. When houses enter foreclosure, home­owners can essentially live for free until banks take possession at the end of the court process, which takes an average of nearly two years in Florida.

Attorney Chris Boss of Yesner & Boss said the deficiency waiver will enable homeowners to buy a house without filing bankruptcy or waiting three years from when foreclosures become final.

“It’s a chance to get away from the house with some money in your pocket,” Boss said. “This is good for the economy.”

Other national lenders started similar programs.

Late last year, JPMorgan Chase began giving homeowners $10,000 to $20,000 and waived losses on the mortgage. The bank still suffers a loss in the process, but generally speaking, sale prices on short-sale homes are higher than foreclosed homes.

Real estate experts and economists have said the housing market cannot fully recover until the millions of distressed mortgages are removed from the system.

Mark Stopa

http://www.stayinmyhome.comThis entry was posted in Main. Bookmark the permalink.

22 Responses

  1. I hired an attorney to defend a foreclosure case. We signed an agreement for a flat rate of $6000.00 to defend the case to the end. Instead of going to trial, the bank offered me $25,000.00 to drop my counterclaim and surrender the house. I agreed to use the $25,000.00 to purchase a new house.

    My attorney said that I have to give him 1/3 of the $25,000.00 even dough we had a signed agreement for a flat rate of $6000.00. The attorney did much less work by not going to tril; I refused to give him part of the $25,000.00 taxable cash for key amount.

    Any advice?

    Max Pilet

  2. […] Like this: Like Be the first to like this post. Filed under: bubble, CDO, CORRUPTION, currency, Eviction, foreclosure, GTC | Honor, Investor,Mortgage, securities fraud Tagged: | bankruptcy, borrower, countrywide, disclosure,foreclosure, foreclosure defense, foreclosure offense, foreclosures, fraud, LOAN MODIFICATION, modification, quiet title, rescission, RESPA, securitization, TILA audit, trustee,WEISBAND « BOA Reversing: Cash for Keys up to $20,000 […]

  3. FILE A PROCLAMATION OF DEFAULT AGAINST BANK , EMERGENCY HEARING IN FEDERAL COURT AND STRUCTURE IT FOR LIMIT OF 14 DAY RESPONSE. WHEN THEY DONT SHOW UP THAN YOU HAVE WON THAN RECORD IT COUNTY AND STATE. THAN IF YOU HAVE JUDGEMENT GO FOR DAMAGES. GOD BLESS. BOB

  4. […] a common misconception of bankruptcy law, and may be the result of news articles dealing with the mortgage foreclosure crisis.  Last year the House of Representatives passed H.R. 1106: The Helping Families Save Their Homes […]

  5. Ku,
    If you hire a lawyer to represent you and have him ask for Evidential Hearing where you demand the Bank to show the Court their standing to foreclose i.e the proper notes etc. If they can’t prove thei rstanding, your attorney can file Motion to Vacate Judgment and Cancel the Sale, then you may be able to get your house back. Stop fooling around, get a lawyer quickly, your situation is a typical situation which can be solved by an experienced foreclosure defense attorney.

  6. All the LIES are exposed in the ACCOUNTING.

  7. DIANE,

    I’m so sorry to hear about what you’ve recently gone through. Don’t give in to the banks’ demands…fight them with every breath left in your body! They don’t want you to file an appeal, because they know that if your case is taken to a lower court, they could lose. Have your attorneys asked the bank and/or lender/investor to provide accounting ledgers showing that your payments were posted to your account on BOTH sides, meaning the servicer got the money, posted it in a “timely manner” to your account (aka not making you late in your payments, and charging you out the ass for junk late fees), and has the lender/investor shown the payments received on their end? You do have a burden of proof, and it’s your money you’ve been sending in, and they have a legal right to show you that those payments have been posted and gone to an actual “mortgage”. That’s not complete b.s.
    I’m going through this ordeal right now with BofA. they sent a payment ledger, but they have messed the thing up so badly and made Postings, Miscellaneous Postings, Posting Reversals, tacked on late fees, omitted payments that were made (to the tune of $20,516.37). They make these accounting ledgers look very very sloppy for a damn reason. The books are so screwed up that even the flunkies working there don’t know how to read them! Then, to add fuel to the fire, they told my legal counsel they had credited the monies back to the account, but my principle/interest balance never went down. How does that work out exactly? They fudge their books! I’m sure if BofA is capable of such a tactic, that Chase is too.
    Demand that your legal counsel obtain these documents for you. They work for you, not vice versa. Your burden of misapplied payments, payments actually being posted and sent to an investor/lender, and junk fees lies in this accounting ledger. GET IT! Don’t give up, and don’t quit.

  8. Here we are, back on the Cash For Keys bullshit again. We’ve seen this before. I’m sorry, but for anyone with more than $20,000.00 worth of equity in their homes, this is a meager settlement at best.
    Myself, I have made $15,000.00 worth of improvements on this home I live in, and had to pay a substantial downpayment to even purchase it (to the tune of $38,000.00).
    Bank of America is NOT getting off the hook so easy in my case…..take your cash for keys, fold it and shove it where the sun don’t shine!!! Offer people options to stay in their homes, lower their principle and annual interest rates, or better yet, own up to the fraud!
    I bet the people that are willing to do this will be in for a shocker come tax time…a nice, fat, 1099 will arrive in the mail! I’m just wondering HOW this is going to wind up on the BANKS books…a loss, a writeoff, not at all…what?

  9. I’m dealing with US Bank. My house was sold on 9/18/11. The confirmation of sale was on 9/28/11 at which time I filed an emergency motion to deny confirmation of sale and also a motion to dismiss the summary judgment. In 2003 I refinanced thru Integrity Financial. They immediately assigned the loan to USB. While going through my paperwork I found all the closing documents for a refinance I supposedly took out directly through USB in 2004, about 6 months after my 2003 refi. I informed the court that the plaintiff is trying to foreclose on the wrong loan as it clearly shows the 2003 loan was paid in full by the 2004 refi. Went to court and the judge gave the plaintiff 14 days to response to my motions and then I was given 7 days to respond to plaintiff’s response. They were supposed to have their response filed on 10/12/11. I went to the court house today to get a copy so I could get started on my response ASAP, lo and behold, no response was filed by plaintiff. I’m taking this as a good sign but does that mean my motions will be won by default? This whole thing is just a mess and I just hope I can have some kind of resolve before the holidays. It’s just unsettling not knowing what’s going to happen. Should I start packing or should I bring out the holiday decorations?

  10. Diane,

    I am sorry about your house. Whatever threatens them – do or at least threaten to do. If they are calling for a deal, they are afraid of what we are all on to. Get everything you can out of them. They lose one appeal, they have lost all appeals. The stakes couldn’t be higher. Grind them into the dirt they are.

  11. Diane—what about the “ledger”—what about the balance sheet–the burden of proof of your payments going to an actual “mortgage”—“tender” of WHAT “debt”—WHAT IS THAT DEBT—what about subject matter jurisdiction—I don’t owe this debt—prove it—they are lying—the trust is empty—SHOW ME THE EFFING LEDGER DAMMIT!!!!

    sorry.

  12. Louise , I felt that way too , but you get ONE life , is it worth the fight ? I have tattoed down my arm ” Illegitmi non Carborudum ” it was an old WW II saying , it is latin for dont let the bastards wear you down . My Dad was a vet , signed up mid dec 1941 . An older fella about his age said that to me while in line at a store one day , I was having a bad day and looked it , I asked him what it meant and he asked me if my dad was in the war and to ask him . I choose my battles and HELL yes bring it or rather I am coming after you still that I am moving doesn’t mean the fight is over . I am waiting for the road warrior shit my friends , prepare , I am no alarmist . But what you see in New York is how it starts , look at history . Pray for the Best and Prepare for the Worst . Be well all thanks for the positive comments , if my comments offend ,that is not my intent -Peace

  13. The Fraudclosure is only one problem.
    The Obama Administraion through the bailout allowed the banksters to open up Retail banks everywhere. On almost every commercial corner including our Supermarkets. There is a bankster branch everywhere.

    So most people do not have much of a choice but to open up bank accounts with the banksters.

    Now they impose a $5 monthly fee for using your debit cards (ATM’S). Most people dont have a real choice.

    AMERCA HAS BECOME THE UNITED STATES OF COMMUNIST AMERICA.

    NEVER AGAIN.

  14. The only way out of this is to have the same attitude we had in World War 2. The complete defeat of the enemy. The Banksters and their friends.

    THIS IS GONNA HAPPEN. The Occupy Wall Street Movement is really world wide. Egypt, Syria, Israel, Greece, Spain United States etc…

    NEVER AGAIN

  15. Diane Jenkins

    I have the same scenariou with US Bank,,,I refused to sign a release
    They tried to gsrnish 12 k in attorney fees and they forced me in BK..
    Now is BK the proof of claim added 69 k in attorney fees…but only after judge gave them 12 K

  16. @malco: ditto. the house has become a burden and a distraction. fight for your life, and then forsake everything else.

    A-MAN has it right:

    NEVER AGAIN!

  17. Malco – it is good thing to vent – Join us – the 99% – We need leaders – Save your post – Diane

  18. I lost in court 2 weeks ago – Judge Monroe gave Chase a free house – Mine – been in my family 25 years. Sustained Chase’s Demur – citing WAMU/CHASE purchase agreement and my inability to “Tender”.
    Chase contacted my attorney yesterday and willing to negotiate if I don’t file an Appeal (which we plan to do).
    I am asking for principal reduction and low interest rate fixed to market value.
    Chase is threatening me with Attorney Fee’s if I Appeal.
    I’ll let you know their answer.
    Diane in Laguna Niguel, Ca.

  19. Screw BofA. I am not letting any bank or mortgage servicer off the hook. They committed fraud, and they will pay for it. Perjury, forgery, fraud, fraud on the court–who are we kidding?

  20. @malco- I agree, bring on the money! Pay me and I will leave!!! However I feel this is their way of getting us to sign something that will come back and bite us in the ass…

  21. Hell B of A , Give me 20 k and I already have a quailified buyer lined up if you waive the fees and penalties , 20 k and I will be out in 90 days deal ? I used to love my home , but after 5 years in BK court , mods, HAMP , LIES LIES LIES I don’t care about this house and a family member is , someone who could give this house the love I used to have for it . It’s truly sad , we have been here since 1989 and I already have my things in boxes , I am ready to be a minimalist . We all put WAY to much emphasis on material things , F this house , it is just walls and doors and windows , I put them all in and up , this house was built in 1904 and me being a remodeler , totally redid EVERYTHING . But that was 20 years ago , and I have perfected my craft since then ( even the “new ” houses in the area aren’t as nice ) I worked in the affluent DC suburbs for select designers , doing showcase homes . Now I look at my house and think , I could NEVER turn this over to a customer , so I have another rental property and I will ad a addition , in a sense , making it a duplex ( my Mom-in-law retired there ) so we can be there for her as well , it will be less than 1/2 the size of my existing home , super efficient , and cost me about 7-8 k to do and we will split the utilities ( we will do most ) and it is a win win for all – bring it to Md you slimy bastards I will do it – you red these posts , your CEO’s office doesn’t know what to do with me . The assign a new account specialist every week , and I sink each one systematically , it has actually become a rather twisted form of entertainment for me , I laugh when I get my monthly statement . Life is too short too let our government and a bunch of lying pieces of human waste ( bankers ) ruin your life , would they face me man to man ? Well they may to ,I have all there home addresses , but I’ll take the money Drew ! They will hide behind the courts they own and I will be in prison , like I said hold your ground , My latest acct. spec . says on her voice mail she will return my call within 24 hours , well sweetie , it’s been 48 , why haven’t you called me back ? Was it because I said I was ready to “lawyer up ” ? Educate yourself here , go on the offensive , become a pain in there ass , but, most important is , do not let it destroy you . It almost did me , until I went after them , be aggressive – but polite .Malco

  22. Haven’t we read that one already?

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