Bank of America has become well known for offering some of the sweetest deals to homeowners going the short sale route. They have also been named the lender allowing the most short sales to occur. Bloomberg.com noted back in 2012 that the Bank of America Corp. topped both JPMorgan Chase & Co. and Wells Fargo & Co. when it came approving short sale transactions.
Instead of focusing on foreclosures, Bank of America has been emphasizing alternative options, including deeds-in-lieu of foreclosure and short sales. This bank also began to test their own incentive program for borrowers to go through with a shortsale. This test began in Florida. However, in May of 2012, Bank of America announced that they would be launching incentive programs nationwide, providing borrowers with more relocation assistance when a qualifying short sale transaction is completed.
Borrowers that qualify for the program may be eligible to receive between $2500 and $30,000 in cash when the short sale closes. The assistance offered by Bank of America is decided on each individual case. However, the determination process takes into account the amount owed, the home’s value and various other factors. According to Bob Hora, a BOA home transition services executive, “Bank of America is committed to providing alternatives to foreclosure whenever possible. This program can help customers make a planned transition from ownership when home retention options have been exhausted or they have made a decision not to keep the home.”
In order to qualify for the assistance payments, sellers may have a pre-approved sale price from the bank before a purchase offer is submitted. Some of the states that have seen the greatest response from homeowners include Nevada, Florida, California and Arizona. The incentives offered and the banks willingness to go through with short sale transactions has helped many homeowners in distress and made Bank of America short sales very popular and well known among buyers as well. Buyers and lenders are both motivated to complete these sales, which makes it easier for buyers that want to complete the process and purchase a home as quickly as possible.
Bank of America also provides plenty of helpful information to borrowers that are trying to avoid foreclosure. Several different programs are available through BOA, depending on the type of loan the borrower has. Homeowners are encouraged to learn more at the bank’s website or by giving their bank a call to learn more about qualifying for a short sale.
Documents Required from Sellers for a Bank of America Short Sale
Short sales are fairly simple with BOA if the existing loan is not a VA loan, an FHA loan or a loan that qualifies for the HAFA short sale program. The documents that the bank usually requires from sellers include the following:
- Bank statements
- Hardship letter
- BOA short sale package
- Payroll stubs
- Tax returns
- Third party authorization
Seller Duties When Going Through a Bank of America Short Sale
The seller has certain duties when applying for a short sale through Bank of America. All these duties can be carried out at the bank’s “Homeowner Portal.”
- Create a seller account
- Supply reasons for hardship
- Upload any needed documents
- Provide financial information
The Bank of America Short Sale Process
The information needed by the bank is collected from the seller and the listing agent. A negotiator is then assigned to the transaction and the process is completed as follows:
- Agent is contacted for a Broker’s Price Opinion
- Documentation is reviewed and any missing information requested
- Internal payoff numbers are ordered
- Counter offer is issued
- File is sent to the investor or MI
- Short sale is accepted, rejected or countered
- Agent is notified of the outcome