JP Morgan Chase started the trend by offering up to $25K to sellers, and now Bank of America has also begun offering homeowners who are delinquent on their mortgages anywhere from $5,000 to $20,000 if they successfully complete a short sale. If the Seller does not qualify for Chase’s or Bank of America’s programs, the Seller may still qualify for the Help for Homeowner’s HAFA program, which allows for $3,000 towards moving expenses in the form of cash at closing and no deficiency judgement against the Seller. Here are some of the details of Bank of America’s program:
Bank of America encourages distressed homeowners to explore a short sale as a viable option for avoiding foreclosure. To that end, for a limited time they are offering enhanced relocation assistance to help motivate homeowners to engage with BOA on a pre-offer short sale. An additional benefit for these pre-offer programs – such as the Home Affordable Foreclosure Alternatives (HAFA) and Bank of America’s proprietary program – is that deficiency may be waived for the homeowner.
Eligibility:
- Homeowners with property in Florida
- Short sales initiated without an offer between September 26 and November 30
- The customer will have to be eligible for one of the without offer programs such as the HAFA program or our proprietary program (specific investor participation and eligibility criteria do apply to these programs)
- Successful closing of the eligible short sale by August 31, 2012
- Minimum relocation assistance is $5,000 and maximum is $20,000, with the specific amount calculated based on the unpaid principal balance
Exclusions:
- Ginnie Mae, FHA, VA and USDA loans are ineligible for participation
- Lot loans are ineligible for participation
- Properties outside the state of Florida are ineligible for participation
- Short sales initiated with an offer are not currently eligible for the enhanced relocation assistance
Frequently Asked Questions:
Q: How can I find out if my client/homeowner qualifies for this relocation assistance?
A: Call a Bank of America short sale specialist at 1.877.459.2852.
Monday – Friday 8 a.m. – 10 p.m.; Saturday 9 a.m. – 5:30 p.m. Eastern
Q: Do I have to do anything differently when initiating or completing the short sale?
A: No. As long as the homeowner’s short sale is initiated between September 26 and November 30, 2011, and the property closes by August 31, 2012, they will be eligible.
Q: Will the relocation assistance funds be reported on the HUD-1 closing statement?
A: Yes, they will be documented on the HUD-1, and a 1099-MISC will be issued.
Q: Can the relocation assistance funds be used to pay off existing liens?
A: Yes, if the investor approves it.
Q: Is the relocation assistance added to any other incentives, such as the HAFA or Bank of America proprietary program incentives?
A: No. A homeowner will receive the $5,000 to $20,000 in place of the typical incentive paid out by these programs. The relocation assistance is essentially an enhancement to the standard payout offered on these programs.
Q: Is the enhanced relocation assistance available for other programs?
A: Currently, the enhanced relocation assistance is only available to short sale programs initiated without an offer. However, as we gauge the success we may extend this incentive to other programs.
If you are seeking alternatives to foreclosure and are considering a short sale, please contact us. We have a 100% success rate getting our short sale listings to the closing table and have helped many families avoid foreclosure and move on with life. You can also call us at the numbers above for a free, confidential consultation over the phone about your unique situation.
Don’t live in the Tampa Bay area? Contact us – we recommend a Certified Distressed Property Expert Realtor in your city.
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