If you want to sell your house but it's worth less than the amount remaining on the mortgage, a short sale may allow you to sell your house and settle your mortgage debt.
By completing a short sale rather than allowing your house to go through foreclosure, you avoid eviction and your house won't be sold at a public sale or auction. Plus, depending on your circumstances, you could qualify for financial assistance to help with relocation costs.
I'm considering a short sale and I haven't received an offer yet
There are advantages to contacting us before you list your home for sale. We can determine an appropriate selling price and start pursuing approvals before you list the property or receive an offer.
Qualified property owners who participate in the Cooperative Short program may be eligible to receive $2,5001 in financial assistance.
If you have a Federal Housing Administration (FHA) insured loan, you must have the FHA’s approval before beginning a short sale that the FHA will accept. Also, with an FHA-approved short sale, you may be eligible for up to $1,000 in relocation assistance.
Federal Housing Administration (FHA) Short Sale
If you're approved for and successfully complete an FHA Short Sale, you may benefit in several ways:
- You may be eligible for relocation assistance
- Foreclosure process may be halted, subject to applicable law.
- Deficiency waiver definition: We may waive the right to collect the difference between what you owe on the mortgage and the amount resulting from the sale of the home.
I've received an offer on my house, but don't yet have approval to pursue a short sale
If you've received an offer, and you aren't already participating in one of our short sale programs, you may continue to follow the traditional short sale process.
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. 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 sale of the property must close by the closing date in the short sale agreement. Bank of America reserves the right to change or alter the relocation assistance at any time.