Bank of America has just released a press releasing stating it is going to refund the U.S. Government $45 Billion in TARP funds, plus interest.
Under the terms of the TARP agreement, Bank of America is repurchasing the 600,000 share of preferred stock it issued to the U.S. Treasury. It plans to repay the $45 Billion using $26.2 Billion in excess liquidity, as well as $18.8 Billion in proceeds from the sale of "common equivalent securities" it plans to convert into common stocks. It also plans to increase liquidity by $4 Billion through "asset sales" by June 30, 2010.
Could this be a sign that the company most notorious for dragging their feet on short sales could possibly be in a position to improve the speed by which they handle short sales? Does this mean we might actually see some movement? We can only hope. I'll believe it when I see it.
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Lina Robertson Jones
Owner/Agent
RE/MAX Solutions
1715 James River Road
Ozark, MO, 65721 |
Mobile: (417) 844-7265
linarobertson@remax.net
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About the author: I am full-time REALTOR® with RE/MAX Solutions in Springfield, MO, and a member of the Greater Springfield Board of REALTORS®. I have helped hundreds of families in the Springfield, Nixa, Republic and Ozark real estate markets, whether buying a home, or selling a home. Visit my website at www.ozarks-realestate.com to search for All Springfield MO Area MLS listings. Want to know what our market is like? My website is also an excellent resource for current Springfield MO Area Real Estate Market Reports, as well as current market reports for Ozark, Nixa, Republic, and Rogersville.
I don't know if it will have any effect on short sales. As they wind down the bailout program and foreclosures continue to rise it would be nice to see the banks get more proactive.
Lina I am with you. I will believe it when I see it also. Thanks for sharing. Great post.
Lina - Unfortunately, it may mean they don't want the government interfering in their business and telling them how to handle short sales and modifications.
I think they are tired of the government telling them to improve. Where did they come up with the money by the way?
It will be interesting to see how BOA comes out of this mess with all the short sales they have botched over the last year.
Thanks for the Twitter follow. I like your tweets with link back to your AR blog.
They are a flawed company trying to do too many things. They have no niche.
I believe you would have to somehow tie the handling of short sales to executive pay in order for that to improve ! no bonuses being decisioned until the short sale pipeline has been decided? May get some of those on the fast track then.
I also read through the comments. I think it means that they don't want the government telling them how much to pay their executives.
Lina, I am holding my breath but not for too terribly long. Thank you for sharing this announcement!
I was looking for a new post from you and found this one again. In a refund you usually don't pay interest. Repay yes, refund no...
Hi Lina - I just wanted to stop by and wish you a Happy & Healthy New Year!!!