Bank of America Cooperative Short Sale Program – General Guidelines and Information

Bank of America, in seeking to help prevent more foreclosures, has initiated its cooperative short sale program. Basically, the cooperative short sales are streamlined and structured to take less time and less paperwork, while continuing to offer relocation assistance in the form of a cash payment to the distressed homeowner at closing. The following are a few key points about the program:

1. The program is applied for prior to obtaining an offer/contract to purchase the property.

2. A valuation of the property will be performed at the onset of the process and the corresponding figure will be provided to us.

3. The cooperative short sales are typically processed in 30-45 days (once an offer meeting the valuation price is submitted)

4. The program further allows for a reduction in the asking/list price every 21 days that an offer is not received

5. Most of the lender’s cooperative short sales fully release the homeowner from any deficiency balance

6. The program also provides the opportunity for homeowner relocation assistance ranging from $3,000 to $30,000

 

Application/Qualification:

1. Your loan must be secured by a participating investor (a third party that has ownership of the loan)

2. You are not eligible or were declined for the federal government’s Home Affordable Foreclosure Alternatives program

3. You owe more on your house than it is worth

4. You are experiencing a hardship (such as a job loss, divorce or medical emergency) and are no longer able to make payments on your home loan

If you would like more information about this program, or should you have any questions, please feel free to contact our office to set up a free consultation. We look forward to hearing from you and to being of assistance in your real estate matters.

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