Great news for homeowners considering a Short Sale that have mortgages with Bank of America.
Many homeowners are already aware that if they have their short sale approved by their bank, they are eligible to receive cash at the closing known as a Seller Incentive, Borrower Incentive or Relocation Assistance fee. Yes, you can “get paid” to walk away from your underwater home. For HAFA Short Sales, the maximum Relocation Fee is $3,000; for FHA Short Sales, the maximum Borrower incentive fee is $1,000.
Bank of America is sweetening the pot in a major way. According to their new Short Sale Relocation Assistance Program, Bank of America will now pay short sellers up to $30,000 in Relocation Assistance Fees at the time of closing a Short Sale. The fee can be combined to include HAFA relocation fees or Bank of America’s proprietary short sale relocation fees.
It’s an eye-popping figure, but not unprecedented. We’ve had clients with other lenders receive as much as $20,000 in borrower incentives at the closing, as one of our clients received in a recent Chase Short Sale in Newark, NJ. Another of our clients has been approved for a $10,000 borrower relocation fee in a Chase Short Sale on a property in Irvington, NJ, which might not sound as impressive but as a percentage of the gross sales price was; the $10K was being paid on a sales price of only $50,000.
Bank of America has not stated how long this program will last; only that it is a “limited time offer.” A short sale must be initiated by the December 31, 2012 and close by September 26, 2013, to be eligible for the enhanced relocation assistance fee. The amount of the fee will be determined on a case-by-case basis, but will be partially determined by the value of the home, amount owed and other considerations.
If you are interested in determining whether or not your New Jersey home qualifies for a $30,000 relocation assistance fee via a Bank of America Short Sale, please contact us to schedule a confidential appointment to discuss your situation.
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