Sunday reading on the mortgage interest tax deduction and the housing market

Here are two articles from today's Los Angeles Times.  The first details the mortage interest tax deduction and efforts to -- maybe -- eliminate it.  Here's the title and link: A look at proposals to limit the mortgage interest tax deduction.  Of course, if the deduction is eliminated, California homeowners will be hit harder than homeowners in other states.

The second article is Short-sale purchases can easily fall apart.  Here's the link.  Of course, if you've been trying to buy a home in the greater L.A. area for any amount of time, you probably could have written this.

A new short sale plan from BofA? Wha? Gah!

Apparently BofA, our all-time-favorite-lender-not, is rolling out a new short sale program.  It's called the coop program, and it calls for approval of a particular short sale before offers are received.  I learned about this from a listing agent when I called to inquire about the status of my buyer's short sale offer.

In the short term, this will delay the sales of these kinds of distressed properties.  In the long term, it will be good, however, as potential home buyers won't have to waste their time on properties that are not approved.

And not all short sales do get approved, or get approved at market price.  I just had a (different) short sale deal die because the bank would not approve the appraised price and wanted more money.  My buyers, and the seller too, have been waiting on the approval SINCE EARLY DECEMBER. The bank was Bank of Evil Empire Bank of America, naturally.  I hope to blog more about this particular transaction in the future.

Here's how my short sale is going

I have a short sale listing at 10862 Bloomfield.  We have an all-cash offer.  For those interested in the process, here's how it's going so far.  The buyer has two loans; both are with Chase.
- 2/25/10 -All required documents uploaded to Chase Bank
- 2/26/10 - Chase confirmed receipt for the first but not the second.  I resent.
- Last week: I called six different short sale department numbers and still had to send the documentation for the 2nd to Chase.  Twice.  They finally copped to getting them on the 3rd.  And told me that different departments will handle each loan.
- This week: Called six numbers at Chase again; sent parts of the document package that they said they didn't have again.  Was told that a processor has been assigned for the first loan.  Left him a message.
Actually, I don't think this is all that bad.  I just plan on spending a half an hour, minimum, on the phone with Chase for little bites of info.