Bank of America recently announced on its website that it will be considering homeowners that are attempting short sales for seller incentives of up to $30,000. The incentive program is now being released nationwide after a successful result in a trial program attempted in Florida.
ALTERNATIVE SELLER INCENTIVE PROGRAMS
Up to this point incentives have been paid mostly in government programs such as HAFA ($3,000) and FHA Pre-Foreclosure Sale Program ($1,000). While there have been occasions where private investors have allowed for some money to go to the homeowner as an incentive . Those instances are rare and have been like winning the lottery for some of our past clients. This new initiative appears much more promising, but only time will tell if it benefits many individuals.
WHO QUALIFIES FOR THE INCENTIVE?
Bank of America has been very vague on what the qualifications for incentives are and the average amount that will be paid to homeowners. Much like there other internal guidelines, they likely will not release exactly what the criteria for the incentives are for the public to review. This will require experience and trial and error on the part of experienced professionals that have negotiated short sales with lenders and understand how to obtain internal information from negotiators, processors, and supervisors. What we do know is that to qualify, Bank of America must at least service the loan that is being negotiated for a short payoff. In addition, the short sale must be initiated before 2013. Finally, the short sale should e initiated prior to receiving an offer. That being said, Bank of America has indicated that all active short sales will be considered for incentives if requested. We intend to take that action on behalf of all existing clients that have loans serviced by Bank of America at this time. However, even if you do not qualify for the Bank of America incentive program, you may still qualify for seller incentives provided under HAFA.
HOW MUCH WILL BE ALLOWED IN THE SHORT SALE?
The amount allowed under the program has a large variation. Bank of America has stated that it will be anywhere between $2,500 – $30,000. This is likely a factor of the offer received, the value of the property, the condition of the home, ect. Most that qualify will likely receive on the lower end of the incentive spectrum, but that is still better than nothing at all.
At the Wells Law Group, we have successfully closed short sales for over 100 clients. We offer free consultations with homeowners that are experiencing difficulty with their mortgages. In the consultation we will discuss what to expect in a short sale, how a short sale compares with a foreclosure, and what the legal implications of all available options.
To schedule a consultation with an experienced real estate attorney at the Wells Law Group, call (480) 428-3290 today. We will be happy to answer any questions you have and provide you with the information necessary to make the best decision to move on with your life.