Bank Of America may pay you to Short Sale
your upside down property.
Short Sale Relocation Assistance Program:
Your clients could receive
$2,500 to $30,000 in relocation assistance Your financially distressed clients want to avoid foreclosure. You want to help them. So do we!That’s why Bank of America is excited to announce that for a limited time, we are offering enhanced relocation assistance payments in which qualified homeowners who initiate a short sale without an offer could be eligible to receive $2,500 - $30,000* in relocation assistance and owe no more on their mortgage with the sale of their property. Don’t miss this limited-time offer to get your distressed clients the help they need by initiating a preapproved price short sale today atagent.equator.com.
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Determining your clients’ eligibility is easy:
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Once you initiate the short sale at agent.equator.com we’ll evaluate the homeowner for this offer quickly to determine if they qualify for the enhanced relocation assistance.
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The homeowner must participate in one of the preapproved price short sale programs, such as HAFA (Home Affordable Foreclosure Alternatives) or Bank of America’s proprietary program. Specific investor participation and eligibility criteria do apply to these programs.
Have an active preapproved price short sale? Don’t worry.
Bank of America is reviewing all current, in-process preapproved price short sale agreements to determine who is eligible for this limited-time offer. Eligible homeowners actively participating in a preapproved price short sale program (such as HAFA or Bank of America’s proprietary program) will receive a letter if they qualify for the additional relocation assistance. The relocation assistance will be paid at closing.
Frequently Asked Questions:
Q: How can I find out if my client qualifies for this limited time offer?
A: Call a Bank of America short sale specialist at 1.866.880.1232Monday - Friday 8 a.m. - 10 p.m.; Saturday 9 a.m. - 5:30 p.m. Eastern.
Q: Do I have to do anything special when initiating or completing the short sale?
A: No. But act quickly by initiating the short sale at agent.equator.com. This is a limited-time offer that your clients won’t want to miss out on.
Q: If a short sale is initiated with an offer, will it qualify for this relocation assistance?
A: No. This relocation assistance is only available on preapproved price short sale programs. Short sales initiated at the time an offer is received do not qualify for the enhanced relocation assistance funds.
Q: Will the relocation assistance funds be reported on the HUD-1?
A: Yes, funds received at closing will be documented on the HUD-1, and a 1099-MISC will be issued.
Q: Can the relocation assistance funds be used to pay off existing liens?
A: Yes, the homeowner may use funds to pay off existing liens or to help with relocation expenses.
Q: Is the relocation assistance added to any other incentives, such as the HAFA or Bank of America proprietary program incentives?
A: The homeowner incentive will be inclusive of the $3,000 HAFA incentive. For example, if the homeowner is eligible for a $5,000 homeowner incentive, $3,000 will be from the HAFA incentive, and $2,000 will be from the homeowner incentive.
Q: Is the enhanced relocation assistance available for other programs?
A: Currently, the enhanced relocation assistance is only available to short sale programs initiated without an offer. However, as we gauge the success we may extend this incentive to other programs.
Questions?
Homeowners and agents may call 1.866.880.1232 to speak to a Bank of America short sale specialist about this exciting limited-time preapproved price short sale program offering
Q. Can I do a short sale even if I am current on my payments and can afford the payments?
A. The quick answer is Yes (and yes).
Can you short sale your home even if you are not late on your mortgage and may be able to make the payments. In the industry that is called a ‘strategic short sale‘
A short sale happens just like any other home sale. A Realtor lists the home, an offer is received, you (the seller) decide if you want to accept/ reject or counter the offer. Once terms are finalized the home is pending/ in contract just like a normal sale. You and the buyer sign the contract. YOU DON’T NEED PRIOR APPROVAL FROM YOUR LENDER TO DO A SHORT SALE.
A short sale will require the additional step of lender approval.
Note: Please be clear. A short sale may not be the best option for you. You need to seek advice from your Accountant and/ or attorney.
A vast majority of the time a short sale IS the overwhelmingly best solution for underwater owners.
You DO NOT need to be late on you mortgage to do a short sale. In fact, there is an advantage now in remaining current on your payments.
Breaking news: June 1, 2012, the 3 major credit reporting agencies have announced they will change the impact of short sales on a borrowers credit (assuming they missed no payments and weren’t late) to a ‘neutral’ . Meaning little to no negative credit ramifications.
Translated: If you didn’t miss any payments prior to the short sale you won’t have a credit hit.
Even better, the standards to obtain a mortgage following a short sale have changed dramatically. If you didn’t miss ANY payments prior to the short sale it is possible to get another mortgage immediately. Yes, you read that correctly. Short Sale today…buy today.
Generally speaking, if you did miss payments prior to your short sale you will have to wait as little as 18-24 months before securing another mortgage.
It gets even better.
Many lenders will literally PAY YOU to do a short sale. Most recently Bank of America announced a new short sale program that pays qualifying owners up to $30,000 to do a short sale. You read that right. You are being PAID to short sale your home.
In most cases lenders are even waiving deficiency judgments.
(A deficiency judgment occurs when the lender pursues the former borrower for the loss from the sale. For example, the home sold for $300,000 but the mortgage balance was $400,000. In some states with certain types of mortgages a lender could obtain a judgment against that former borrower for their loss…in the prior example, $100,000)
Want more motivation to do a short sale?
There is a tax law that expires at the end of this year that allows most owners to not pay any taxes on the forgiven debt. Prior to this temporary tax law change the forgiven debt was treated as regular income! Strong word of caution: 1) Talk to your account to make sure you qualify. 2) This tax law expires at the end of 2012. Unless extended those closing their short sales in 2013 may be subject to taxes on the forgiven debt.
Bottom line, yes a short sale is your best solution if you are ready to get out of your underwater home.