We’re pleased to announce we have successfully negotiated a $10,000 cash incentive from Bank of America for our client here in Massachusetts to do a short sale. Here’s an example of the short sale cash incentive letter Bank of America is sending to eligible homeowners.
In a press release Tuesday, Bank of America announced a new program that offers struggling homeowners between $2,500 and $30,000 if they sell their home through a short sale. Bank of America’s cash incentive program is a proactive approach to assist struggling homeowners before their homes go into foreclosure. This program is available for homeowners whose mortgage is owned and serviced by Bank of America.Do You Qualify?
We have negotiated large short sale cash incentives before. For instance, back in November 2011, along with Dorner Law, we negotiated a $35,000 payment from Chase Bank to their short sale client at closing. Since then we have negotiated many more large short sale cash incentives for our clients. Now we’re glad to see Bank of America is on board to offer cash incentives like these to assist distressed homeowners.
If you have a Bank of America mortgage and are having trouble making your monthly payments, contact us to get more information about doing a short sale.
29% of Our Short Sale Clients Get Relocation Assistance
In April, 36 percent of our short sales closed with relocation assistance. And so far this year, 29 percent of the short sales we have closed received relocation assistance. The average cash incentive for our short sale clients is $2,932.05. This is a great help for people to help pay for the cost of moving and relocation to more affordable housing.
For homeowners who are at risk of foreclosure, we encourage you to do a short sale, especially with more banks offering cash incentives like these. Many homeowners don’t realize that after a foreclosure banks will continue to pursue them for the mortgage deficiency. A foreclosure has a serious negative impact on the homeowner’s credit score and it delays their ability to purchase a home again for up to 7 years. Foreclosures also have a negative impact on neighborhoods. Foreclosed homes are often left in disrepair and bring down the home values in the surrounding neighborhood. With a short sale, homeowners stay in the homes until they’re sold, so the homes are in much better condition than foreclosed homes.
Short Sale Cash Incentive Program Details
To qualify for Bank of America’s short sale cash incentive program, you must work with the bank to get a preapproved sales price prior to submitting a purchase offer to the bank. The short sale must be initiated by the end of this year and close by September 26, 2013. Short sales that have not yet closed may also be eligible for the relocation assistance. The amount of relocation assistance is determined on a case-by-case basis using a calculation that includes the value of the home, the total amount owed, among other considerations.
In the letter sent to distressed homeowners who may qualify for this program, Bank of America offers tips on how to successfully complete the short sale including:
- Returning all requested documents on time
- Responding quickly to counter offers
- Completing the release of subordinate liens where applicable
- And staying in touch with your real estate agent
The cash for short sales program allows banks to avoid paying legal fees associated with foreclosure. And by selling the home banks avoid paying the taxes and maintenance costs that come with the property.
For homeowners struggling to pay their mortgages this new short sale cash incentive will help defray the costs of moving and assist them in transitioning from homes they can no longer afford.Do You Qualify?