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Bank of America Short Sale Incentive Program

Posted By Michael Valdes @ Oct 13th 2011 9:30pm In: Short Sales

 BoA Short Sale Incentive program Short Sale Incentive Program

The clock is ticking on homeowners who want to take advantage of Bank of America's recently announced Florida short-sale incentive program.  To collect up to $20,000, qualified sellers must get their homes listed for sale by the end of November.  The bank, which services 1.1 million Florida mortgages, says it is not limiting the offer to delinquent borrowers. Homeowners with good payment histories could also qualify, said Christina Beyer Toth, a Tampa-based Bank of America spokeswoman.  When the nation's largest lender announced the program offer last week, it didn't specify which homeowners would qualify or whether the bank wanted to only dump toxic loans it acquired from Countrywide Financial in 2008. 

Here's what else Bank of America mortgage holders need to know about the program:

Q.  When do the homes have to be listed for sale? 
A.  Between Sept. 26 and Nov. 30. The deal must close by Aug. 31, 2012. Sales already under contract are not eligible for the cash assistance.

Q.  Can homeowners with good payment histories qualify if their loans are under water? 
A.  Yes. Bank of America selected Florida for the test-and-learn program to determine whether the additional incentive increases the use of short sales instead of other more expensive, and perhaps less dignified, transitions like foreclosure. If it works in Florida, the bank might roll it out in other parts of the country.

Q.  How will the payouts be determined? 
A.  Qualified homeowners will get 5% of the unpaid balance as of August 2011, with a minimum payout of $5,000, Bank of America says. For instance, a homeowner who owes $100,000 as of August would get $5,000 (5% of $100,000). A homeowner who owes $200,000 would get $10,000. And so on up to a maximum of $20,000. The sales price does not impact the payout.  To sweeten the deal further, Bank of America 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. That can save homeowners thousands of dollars and enable them to buy another home quicker.

Q.  Will the program impact a homeowner's credit rating?
A.  It depends on whether the loan is delinquent or current when the home is sold. The short sale will be reported as any other short sale is reported, in line with national credit reporting standards, Bank of America says. If "short sale" is listed on a credit report, the score will drop by at least 100 points, experts said. But some short sales are being listed as "paid in full," which wouldn't have the same detrimental impact on a credit rating.

Q.  Are the cash payouts government funded?
A.  No. Bank of America will pay all incentives.

Q.  How can homeowners get more information?
A.  Bank of America has set up a dedicated team of short-sale specialists to answer questions related to this test-and-learn program...

The number is (877) 459-2852

Also, we were just told by a BoA Short sale specialist that the qualifications for this program mirror the HAFA program... sorry investors :(

If you need to do a short sale and your home is located in Tampa Bay Florida, short sale expert Michael Valdes of Keller Williams Realty can help you. Michael's professional fee normally will be completely paid by your bank.

If your home is located outside of the Tampa Bay area, ask Tampa real estate agent and Tampa Short Sale Realtor Michael Valdes to refer you to his list of highly qualified short sale specialists.

Contact Michael Valdes

   Bank of America Short Sale Incentive

Info on other Bank Short Sale Incentive Programs



Courtesy of Loss Mitigation Institute LLC

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