Changes to Bank of America Cooperative Short Sale Program

18 Jan

Bank of America came out with the Cooperative Short Sale Program to help Distressed Homeowners complete a short sale if they owe more on their mortgage than their house is worth and do not qualify for the Home Affordable Foreclosure Alternatives (HAFA) short sale program. Similar to HAFA, but with more flexibility built in, more homeowners can Avoid Foreclosure by qualifying for the Cooperative Short Sale Program. Many of the major benefits of the government introduced HAFA program are in effect with this program as well. For example, guaranteed forgiveness of debt with no possibility of a Deficiency Judgment, pre-approved listing price on the property, and Cash at closing relocation Incentives. As a matter of fact, the Cooperative program potentially allows for incentives to be paid above the $3,000 that HAFA allows. This program can streamline the approval process and offers financial assistance to help homeowners with relocation and moving expenses.
However, this is not a program that a homeowner struggling to make their mortgage payment can afford to procrastinate on. Bank of America announced, As of January 15, 2013, there will no longer be a temporary foreclosure hold during the Cooperative Short Sale property marketing phase. Bank of America now reserves the right to begin or continue the foreclosure process up until a submitted offer to purchase the property is approved by all relevant parties.
Distressed homeowners and their realtors need to pay close attention to foreclosure notices. In Colorado that is when the NED (Notice of Election and Demand) is filed with the Public Trustee’s office for the county the property is located in. Most Short Sale Specialist realtors should have a good system for monitoring the NED filings on delinquent properties that they have listed. However, we may not be able to rely on the lender to postpone the auction sale date if a homeowner waits too long to get the process started under the Bank of America Cooperative Short Sale program in the future.

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Posted by on January 18, 2013 in Foreclosure, Short Sales


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