$30,000 moving assistance and principle reduction- Is this for real?

I just attended a webinar about the new programs that Bank of America is rolling out for distressed homeowners. Yes for real!

Loan Modification:  Principle reductions and reduced interest rates

Qualification:

• Must be current on their mortgage
• Home must be worth less than what is owed on the mortgage
• The mortgage must be owned by the bank

Loan Modification Enhancements:

• Principal reduction to qualified customers.
• Will work to lower interest rates to provide reduced payments for eligible homeowners

Short Sale: Relocation Assistance from $5,000 – $30,000

• Bank of America will continue to help customers who are pursuing short sales and may offer additional assistance programs, such as deed in lieu of foreclosure and/or financial assistance from $5,000 up to $30,000 to help those who are transitioning out of their properties. This is only being offered for a short time.
•  The short sale must be initiated without an offer. Contact a local Short Sale Realtor who can answer questions concerning this new program.
•  Customers who are already pursuing a short sale may be approved for the DOJ principle reduction program. If this occurs the homeowner will have to decide which option is the best for them, either continue with the short sale or accept the modification.

 Upside down homeowners should get advice from their attorney or realtor about canceling a short sale with an execute contract and the legal implications concerning canceling the contract.

•  If the homeowner cancels the short sale or deed in lieu, they will not be eligible for relocation assistance.