Monday, October 1, 2012

Bank of America Pays for Short Sales

If you have a mortgage that is owned and serviced by Bank of America, there is a new program where this bank is now paying up to $30,000 in relocation assistance for homeowners who are looking to short sale their homes. This program also includes non-owner occupied properties.

A short sale is where you get approval from your bank to sell your home for less than what you owe on the mortgage while at the same time being forgiven for any deficiency between the sale price and the amount you owe. It has been a very successful and popular solution with homeowners who are seeking to get out of underwater homes and want to do so without a foreclosure on their credit record.

How To Qualify for Relocation Assistance

To qualify for the relocation assistance payments, the seller his or her short sale attorney and/or realtor must work proactively with the bank to obtain a pre-approved sales price prior to submitting a purchase offer to the bank.

This is why it is so important to work with an experienced real estate attorney to make sure you qualify under this and other programs that are currently active to assist homeowners in closing on a short sale. There is also a federal tax break program set to expire on December 31, 2012 that a homeowner should be aware of when moving forward on a short sale. See a full report here: “Time is Running Out on Short Sale Tax Break”.

Timing of the Short Sale

A short sale must be initiated by the end of this year and close by September 26, 2013 to be eligible for payment under the bank of America initiative.  Qualifying short sales already approved but not closed yet may also be eligible for the relocation assistance.

The amount of assistance that you may be entitled to under the new program will be determined on a case by case basis using a calculation that includes the value of the home, amount owed on it as well as other considerations of your particular circumstances.

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