Has anyone actually been a part of the Bank of America New Short Sale Program that came on AUG 7th?
Aug 07, 2010 we were all told of a new program and I have been trying to get on this program, and nobody at BofA even will tell me what is going on.
- Details that Bank Of America has begun a new short sale program in an effort to stave off an increasing foreclosure inventory have leaked. The new program is called the HPO short sale program in which a Bank of America representative known as a "Personal Advocate" will be assigned to the short sale and will be very responsive in seeing the short sale process to completion with approvals in just two weeks.
The reported details and benefits of the Bank of America HPO short sale program are listed below.
Key Benefits of the Bank of America HPO short sale program:
1) No deficiency judgments.
2) No pre-qualifying (the value of the home being less than the loan amount qualifies.)
3) Seller is not asked to contribute funds to the short sale.
4) Seller will receive $3,000 at the successful close of escrow (primary residence.)
5) No records documentation.
Required Documentation:
1) The listing agreement
2) The ratified purchase contract
3) An appraisal
4) Signed HPO Form.
Documentation NOT Required in the Bank of America HPO Short Sale
1) No hardship letter
2) No IRS Form 4506
3) No tax returns.
4) No bank/asset statements.
5) No financial worksheets.
This is incredible news because if a borrower has a Bank of America loan and has been turned down during a loan modification request or their loan modification has not worked out the way they had hoped or their short sale had been rejected and they had given up hope and resigned themselves to losing their home or investment property to foreclosure, they might now be able to sell their property in a simple and quick process while further minimizing damage to their credit (other than having a short sale on your credit report which the credit rating agencies reportedly will begin to significantly minimize after just two years as opposed to a foreclosure or deed-in-lieu which won't begin to minimize until seven years have passed).
Bank of America is apparently taking this approach because they realize furnished homes in good condition will net them a higher price and nine to eighteen months of neglect and unpaid property taxes and mortgages can be greatly reduced which will help the corporate bottom line.
A short sale occurs when the cumulative debt on the property is greater than the net sales proceeds. This results in a shortfall of money relative to the debt and requires either a cash contribution from the seller, an increased cash contribution from the buyer, a forgiveness of debt from the lender or a combination of these three. Hence, the name short sale.
I want my Santa Cruz County Short Sale Clients to get on this program and I need someone in it to tell me how they did it.
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