Bank of America, known for being one of the most difficult banks to deal with in a short sale, has said that it has eased its policy related to short sales to facilitate more of them, instead of letting properties slip into foreclosure, according to a report in American Banker. Previously, this bank required that 10 percent of the proceeds from a property’s selling price go towards paying a second or an equity line, however, now they will accept a 5% of the net proceeds in a short sale.

Short sales contracts, while not all that attractive either, can result in losses to a bank of 30% less than in foreclosures. With moratoriums drying up for some borrowers and defaults surging, banks seem to be getting a bit more flexible or they stand to lose big money. see more