Published December 2, 2011
Bank of America is still encouraging distressed homeowners to consider a short sale as a viable option for avoiding foreclosure, as the Florida Enhanced Short Sale Relocation Assistance Program has been extended to Dec. 12, 2011.
This program offers enhanced relocation assistance to help encourage homeowners to engage with Bank of America on a pre-offer short sale. Homeowners may be eligible for relocation assistance between $5,000 and $20,000.
Eligibility:
- Homeowners with property in Florida
- Short sales initiated without an offer between Sept. 26 and Dec. 12, 2011
- The customer will have to be eligible for one of the without an offer programs, such as the Home Affordable Foreclosure Alternatives (HAFA) program or Bank of America’s proprietary program (specific investor participation and eligibility criteria do apply to these programs)
- Successful closing of the eligible short sale by Aug. 31, 2012
Exclusions:
- Ginnie Mae, FHA, VA and USDA loans are ineligible for participation
- Lot loans are ineligible for participation
- Properties outside Florida are not eligible for participation
- Short sales initiated with an offer are not currently eligible for the enhanced relocation assistance
Frequently Asked Questions:
How can I find out if my client/homeowner qualifies for this relocation assistance? 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
Do I have to do anything different to initiate or complete the short sale? No. If the homeowner’s short sale is initiated between Sept. 26 and Dec. 12, 2011, and the property closes by Aug. 31, 2012, the homeowner will be eligible.
Will the relocation assistance funds be reported on the HUD-1? Yes, they will be documented on the HUD-1, and a 1099-MISC will be issued.
Can the relocation assistance funds be used to pay off existing liens? Yes, if the investor approves it.
Will this enhanced relocation assistance waive the homeowner’s deficiency? An additional benefit for these pre-offer programs, such as HAFA and Bank of America’s proprietary program, is that deficiency may be waived for homeowners who qualify.
Is the relocation assistance added to any other incentives, such as HAFA or Bank of America proprietary program incentives? 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.
Is the enhanced relocation assistance available for other programs? The enhanced relocation assistance is currently available only to short sale programs initiated without an offer. However, as Bank of America gauges the success, they may extend this incentive to other programs.
