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Short Sale Programs

Considering a short sale? If you’re concerned that your house may go into foreclosure and you haven't been able to qualify for or complete a loan assistance program, a short sale is an option to consider.

Overview

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.

For a limited time, qualified property owners who participate in a Cooperative Short Sale or Home Affordable Foreclosure Alternatives (HAFA) program may be eligible to receive $2,500-$30,0001 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.

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Cooperative Short Sale Program

By selling your house in a Cooperative Short Sale, you may get these and other benefits:

  • An alternative if you don't qualify for HAFA
  • $2,500-$30,0001 for relocation assistance
  • Foreclosure process may be halted, subject to applicable law.
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Home Affordable Foreclosure Alternatives (HAFA)

By selling your house in a HAFA Short Sale, as opposed to the traditional short sale process, you may get a number of benefits:

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Federal Housing Administration (FHA) Short Sale

If you're approved for and successfully complete an FHA Short Sale, you may benefit in several ways:

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 be eligible to participate in a Home Affordable Foreclosure Alternative (HAFA) short sale, or you may continue to follow the traditional short sale process.

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Traditional Short Sale Process

By selling your house in a short sale rather than going through foreclosure:

  • You'll avoid eviction; however, you’ll still need to vacate the home
  • Your house will not be sold at a public sale or auction

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.