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Bank Of America Short Sale - Q&A for Sellers

By
Real Estate Agent with Group 4610 Network

Below is a link I came across today on the BofA website.  If you have a BofA Mortgage then this is a must read. 


Short Sale

Selling your home in a short sale. If you are concerned that your home may go into foreclosure and you have not qualified for alternatives that would enable you to stay in your home, a short sale is an option you may want to consider.

Is a short sale right for me?

Program goal

The goal of a short sale is to help you avoid foreclosure if you are no longer able to remain in your home. In the short sale process, you sell your home and settle your mortgage debt for less than the amount that you owe.

Eligibility

You may be eligible to sell your home in a short sale, if:

  • you have a hardship, such as a job loss, divorce or medical emergency
  • you owe more than your house is worth
  • you’re unable to afford your current monthly mortgage payment
  • you’re unable to modify your current home loan
How will a short sale affect my credit?

There is a more significant negative impact on your credit with a short sale than with options that allow you to stay in your home, so you should explore all your other options first. However, the negative impact of a short sale on your credit may be less than what you would experience by a foreclosure. This time frame is lessened when doing a short sale compared to a foreclosure.

You should contact a tax professional to gain an understanding of any tax implications.

Will I get any money back from the sale of my home?

Because a short sale would allow you to sell your home for less than the loan, you would not receive any money back at the time of the closing.

Program at a glance

  1. Step 1: Call us and we’ll work with you to explore any options that may be available to help you stay in your home. The sooner you work with us, the more options you may have available.
  2. Step 2: After all other options have been exhausted and you’ve decided a short sale is right for you, we recommend working with a licensed real estate agent who can assist you in listing your home for sale.
  3. Step 3: Once you receive an offer, we’ll begin working to gain approval of your first mortgage short sale request from all necessary parties. It is important to note that if you have a second mortgage with another lender, or any other outstanding debts against the property, it is your responsibility to get approval from those parties.
  4. Step 4: We will determine the fair market value of your home by ordering a valuation and reviewing the prices of recently sold homes comparable to yours in your local market. Based on our findings, we may present you with a counter offer if the original offer is not in alignment with the fair market value of your home.
  5. Step 5: If all parties agree to the terms of the offer (buyer, seller, and any other debt holders), your short sale offer will be approved. Remember, a short sale approval may take longer than getting a traditional mortgage approved. Once your loan has closed, the proceeds are paid according to the terms of the agreement.

Get more details on the steps of a short sale.

 

Want to to more about short sales?  Contact Arizona's Premier Short Sale http://www.group4610.com/homeowners.asp

Comments (3)

Alice Broadway
IXL Real Estate - Mobile, AL
Real Estate Broker

thanks kevin, I am about to experience my first short sale.

Aug 30, 2010 02:11 PM
Damon Gettier
Damon Gettier & Associates, REALTORS- Roanoke Va Short Sale Expert - Roanoke, VA
Broker/Owner ABRM, GRI, CDPE

Kevin, thanks for posting!  This is great consumer information!

Aug 30, 2010 03:12 PM
Troy Funk
Allison James Estates & Homes, Sarasota 941-957-3737 - Sarasota, FL
Broker / Associate

Thanks for sharing .. you have given me some good marketing ideas.

Aug 30, 2010 03:29 PM