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Bank of America Cooperative Short Sale

A short sale program offered by Bank of America.  If you're not eligible for a Home Affordable Foreclosure Alternative Short Sale, we can offer a Cooperative Short Sale to settle your mortgage debt and prevent foreclosure.

Is the Cooperative Short Sale program right for me?

Program goal

A Cooperative Short Sale may help settle your mortgage debt and prevent foreclosure. In addition, you may qualify for financial assistance to help with relocation costs.

With a Cooperative Short Sale, we can determine an appropriate list price and start pursuing approvals before you list the property or receive an offer.

Eligibility

You may be eligible for a Cooperative Short Sale if:

Your loan is owned by Bank of America or other participating investors

You're not eligible for or were declined for the federal government’s Home Affordable Foreclosure Alternatives program

You owe more on your house than it's worth

You're experiencing a financial hardship such as reduced income, medical expenses or a divorce and you're no longer able to make payments on your home loan

If you don't meet the eligibility requirements for the Cooperative Short Sale program, it may still be possible to sell your house through a traditional short sale.

If you aren't able to sell your house through a traditional short sale, your next option may be deed in lieu of foreclosure. This allows you to transfer the title or ownership of the property to the owner or servicer of your home loan in order to satisfy your mortgage debt and avoid foreclosure.

Please contact us to review your options.

How do I get started with a Cooperative Short Sale?

Call us today at:
1.866.880.1232

Mon-Fri 8 a.m.-10 p.m. ET
Sat 11 a.m.-4 p.m. ET

Now that I’m in the process of a Cooperative Short Sale, what’s next?

I've requested a Cooperative Short Sale.

During the call, we'll confirm that you're eligible for this program. You'll need to update us on your current financial situation, and you may need to complete additional documentation. If more forms are needed, we'll send them to you.

Throughout the process, you'll be paired with a Customer Relationship Manager who will answer any questions you may have and help guide you through the steps you'll need to take.

If you don't meet the eligibility requirements for the Cooperative Short Sale program, it may still be possible to sell your house through a traditional short sale.

If you're unable to sell your house through a short sale, your next option may be deed in lieu of foreclosure. This option allows you to transfer the title or ownership of the property to the owner or servicer of your home loan in order to satisfy your mortgage debt and avoid foreclosure. There may be benefits to doing a deed in lieu rather than a foreclosure, so you may want to explore this option.

There are thousands of non-profit groups and government agencies across the country ready to assist you with everything from finding rental housing or employment assistance, to saving money and more. Because these organizations are focused on the unique needs of your community, the resources you find are better able to help with your circumstances and challenges.
 
Search for resources near you

I'm waiting for approval on a Cooperative Short Sale.

We'll work to gain approvals. Even if you’re pursuing a short sale with us, in most cases there’s a third party, known as the investor, who has ownership of the loan. We'll need their approval in order to finalize the short sale.

If you have a Bank of America home equity loan or home equity line of credit, we’ll take care of getting approvals for your Cooperative Short Sale request.

If your home equity loan or line of credit is with another lender, you'll have to contact that lender and request a Second Lien Release form. The second lien lender will be required to provide us with the appropriate lien release documentation before any offer can be considered. Speak with a licensed real estate agent about other types of liens that may also need approval in order for you to move forward with your short sale.

We'll also work to determine a recommended list price. You may have heard this referred to as the fair market value.

A valuation of the property will be performed at no charge to you. We'll consider the sale price of other houses of similar size in your neighborhood.

After the valuation, you’ll receive a valuation letter with the recommended list price for the property and your next steps.

There are thousands of non-profit groups and government agencies across the country ready to assist you with everything from finding rental housing or employment assistance, to saving money and more. Because these organizations are focused on the unique needs of your community, the resources you find are better able to help with your circumstances and challenges.

Search for resources near you

I'm trying to find a buyer.

You're required to work with a licensed real estate professional to market and sell your house. We strongly recommend working with a real estate agent experienced in short sales who can help guide you through the process. You won't have to pay the commissions of the real estate agent since the commission will be paid from the sale of the house.

Typically, you'll have up to 120 calendar days to market and sell your house at the price indicated in the valuation letter. During this time, it's important to:

  • Work with your agent and show your house to as many buyers as possible
  • Keep your house in clean condition
  • Make it available for showings to potential buyers at all times

Keep in mind that the higher the offer received, the better the chance of receiving investor (third-party) approval of the short sale.

The short sale must be an arm’s-length market transaction. This means, that it is not permissible to sell the house to a family member or anyone else with whom you have a personal or business relationship.

There are thousands of non-profit groups and government agencies across the country ready to assist you with everything from finding rental housing or employment assistance, to saving money and more. Because these organizations are focused on the unique needs of your community, the resources you find are better able to help with your circumstances and challenges.

Search for resources near you

I've received an offer on my house.

Once you receive an offer, your real estate agent will submit:

  • A copy of the executed sales contract and all additional documents
  • The buyer's proof of funds or pre-approval or commitment letter on letterhead from the buyer's lender
  • An update on the status of any additional liens on the property

After we receive the request to approve the short sale offer from the real estate agent, we'll review the information and get back to you with a decision on the offer within ten business days.

For your short sale to be completed successfully, your agent must:

  • Submit any requested documents on time
  • Respond quickly to any counteroffers you receive

There are thousands of non-profit groups and government agencies across the country ready to assist you with everything from finding rental housing or employment assistance, to saving money and more. Because these organizations are focused on the unique needs of your community, the resources you find are better able to help with your circumstances and challenges.

Search for resources near you

The offer on my house was accepted.

If we accept the offer, we'll provide you with an approval letter listing our requirements to complete the sale. You'll also receive:

  • A letter outlining the details of the sale of your house
  • A set of documents that must be signed, notarized and returned to us

In order to complete the sale, we must receive all documents by the deadline that we provided in your approval letter.

At the closing, you'll receive $2,500–$30,0001 to help with moving, rental and other relocation expenses. For tax purposes, relocation assistance paid at closing is considered income. Please consult a tax advisor for more information on how this could affect you.

Once the sale is finalized, your mortgage and any other loans against the house are settled from the proceeds of the sale. As with the sale of any house, unless otherwise negotiated, you'll need to move out by the closing date.

We'll report the sale to the major credit reporting agencies as completed for less than the amount owed. Learn more about the potential effect of a Cooperative Short Sale on your credit.

There are thousands of non-profit groups and government agencies across the country ready to assist you with everything from finding rental housing or employment assistance, to saving money and more. Because these organizations are focused on the unique needs of your community, the resources you find are better able to help with your circumstances and challenges.

Search for resources near you

1 The relocation assistance payment is calculated based on the appraised value of your property and the program rules. The total amount will be no less than $2,500, but no more than $30,000. The payment will be delivered after the closing if you comply with all terms and conditions of the program, which include but are not limited to the following: a valuation of the property must be completed and you must satisfy all subordinate liens and provide clear title for the property. If you are still responsible for a deficiency balance after the sale, you should be aware that this relocation assistance will increase that deficiency since it reduces the amount available to apply towards your mortgage debt. If you do not comply with all terms and conditions of the program, you will not receive the relocation assistance payment. The amount of any relocation assistance will be reported to the Internal Revenue Service (IRS) on the appropriate 1099 Form or Forms. We suggest that you contact the IRS or your tax preparer to determine if you have any tax liability. In order to receive the relocation assistance, the short sale must close by April 30, 2014. Bank of America reserves the right to change or alter the relocation assistance at any time.

Cooperative Short Sale Frequently Asked Questions

If you don't meet the eligibility requirements for the Cooperative Short Sale program, it may still be possible to sell your house through a traditional short sale. You can work with a real estate agent who is knowledgeable about short sales and can list your house at fair market value.

If you're unable to sell your house through a short sale, your next option may be a deed in lieu of foreclosure. This option allows you to transfer the title or ownership of the property to the owner or of your home loan in order to satisfy your mortgage debt and avoid foreclosure.

Please contact us to review your options.

It may be possible, depending on your loan and circumstances. Please call us to discuss your options.

You may search a list of real estate agents in your area to find one who has successfully completed short sales with us in the past, or you may decide to hire another agent.

Because you would sell your house for less than the loan amount in a short sale, you won't receive any money from the sale of your house. However, you may be eligible to receive $2,500–$30,0001 in relocation assistance under the terms of the Cooperative Short Sale program.

You may request an extension that would allow you to continue to market the house for sale. If the agreement isn't extended, you may still be able to settle your mortgage debt by signing over your house to us through a deed in lieu of foreclosure.

There are benefits to doing a deed in lieu of foreclosure over a foreclosure. This spares you from having to go through the public auction of your house.

There are thousands of non-profit groups and government agencies across the country ready to assist you with everything from finding rental housing or employment assistance, to saving money and more. Because these organizations are focused on the unique needs of your community, the resources you find are able to help with your circumstances and challenges.

Search for resources near you

If a short sale is completed on your property, we'll report that your loan was "paid in full for less than the full balance." You may consider consulting a credit expert or searching online for more information. To learn more about the potential effect of a short sale on your credit, please visit the Federal Trade Commission website.

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

In that case, you'll follow the traditional short sale process. As soon as you receive an offer, if you are not already participating in a program, a traditional short sale is started.

You can contact your assigned Customer Relationship Manager to discuss any concerns that you have regarding your short sale.

A loan can be transferred to a different servicer while in the process of a short sale. You may hear this referred to as a service release. A loan servicer sends your loan statements, collects your monthly payments (principal, interest, taxes and insurance) and handles other aspects of your loan. You'll be notified at least 15 calendar days in advance if your loan is going to be transferred to a new servicer. Your new servicer will be aware of your short sale status and should have received all of your documents from us. You should continue to work with the new servicer to complete the process you've started or to determine which programs may be most helpful in your current situation.

If you were denied home loan assistance, such as a request for a loan modification, short sale or deed in lieu you may be able to dispute the decision. You can file an escalated case with us if you have reason to believe any of the following are true:

  • You met all the criteria for home loan assistance but were not properly evaluated for assistance or were improperly denied assistance. This may include:
    • You did not receive adequate notice from us about your foreclosure alternatives
    • You were not given appropriate time to respond to communications from us during your loan review process
  • Your loan was referred to foreclosure prematurely, or we did not suspend foreclosure activities when we were required to do so

You can also file an escalated case if either of these two specific concerns apply to your loan:

  • You have a reasonable belief that your mortgage loan is being serviced in a fraudulent manner
  • You have retained a lawyer to help you resolve a mortgage dispute with Bank of America

If you have reason to believe that any of the above apply in connection with your loan review and affected your eligibility for home loan assistance, you may file an escalated case with us to review your concerns.

Please note that inquiries about a pending request for home loan assistance or general questions about the servicing of your mortgage do not meet the requirements for an escalated case. For general servicing questions, please call 1.800.669.6607 (Monday-Friday, 7 a.m.-7 p.m. local time).

To file an escalated case, you or any third party representing you, such as a housing counselor or attorney, should send us a brief letter describing the specific reasons you believe one of the above scenarios applies to your loan or to your application for home loan assistance. If you are represented by an attorney, please have your lawyer submit this request on your behalf.

Escalated case requests must be sent by mail to the following address:

  • Bank of America Corporate Center
    Attn: BAC Escalated Case Unit
    P.O. Box 940508
    Simi Valley, CA 93094-0508

Please note that if a third party, such as an advisor or a nonprofit advocate, contacts us to submit an escalated case on your behalf, we must have your written authorization before we can communicate with them about you or your loan. Without your written authorization, we will not be able to discuss your home loan with them. We can provide you with an authorization form upon request.

What to expect after submitting your request

Within three business days after receipt:

  • If your submission meets the requirements for an escalated case, within three business days of the receipt of your request, we will send you a written acknowledgement that we have received your request. This acknowledgement will also include the estimated date by which your escalated case should be resolved, along with a toll-free number for the Escalated Case Unit.

Within 15 calendar days after receipt:

  • In most cases, within 15 calendar days of receiving your request, we will mail you a written response describing the proposed resolution of your request and any next steps to be followed by you or by us. If your matter cannot be resolved within 15 calendar days, we will notify you of the delay and give you a new estimated resolution date. This new estimated resolution date, in most cases, will be no longer than 30 calendar days from the date we received your original escalated case.

Checking the status of your escalated case

Your written confirmation will include a toll-free number you can call for information about your escalated case.

1 The relocation assistance payment is calculated based on the appraised value of your property and the program rules. The total amount will be no less than $2,500, but no more than $30,000. The payment will be delivered after the closing if you comply with all terms and conditions of the program, which include but are not limited to the following: a valuation of the property must be completed and you must satisfy all subordinate liens and provide clear title for the property. If you are still responsible for a deficiency balance after the sale, you should be aware that this relocation assistance will increase that deficiency since it reduces the amount available to apply towards your mortgage debt. If you do not comply with all terms and conditions of the program, you will not receive the relocation assistance payment. The amount of any relocation assistance will be reported to the Internal Revenue Service (IRS) on the appropriate 1099 Form or Forms. We suggest that you contact the IRS or your tax preparer to determine if you have any tax liability. In order to receive the relocation assistance, the short sale must close by April 30, 2014. Bank of America reserves the right to change or alter the relocation assistance at any time.