Bank of America Short Sale and Foreclosure

The Bank of America Cooperative Short Sale Program is designed to simplify the short sale process for sellers. The short sale program, started by Bank of America in January 2011, is designed to lessen the amount of intimating paperwork and shortened the time delays that have been historically associated with short sales.  If you need to stop a Bank of America Foreclosure, a short sale is one option that can stop the process. 

The Bank of America co-op short sale program makes this possible by working with homeowners and real estate agents prior to marketing the home to reach an agreement on the terms of the short sale including approval of the seller and listing price. With these details in place, short sales can be completed in a fraction of the time (typically 2-3 months).

Will You Qualify For A Bank of America Short Sale?

If you attempted a loan modification or forbearance with Bank of America and you did not qualify, or you were approved for a modification, but you were not able to complete the trial payments, you may be eligible if you need to settle your home loan debt to prevent foreclosure.  In addition, you may qualify for relocation assistance from Bank of America.  At closing, you could receive up to $3,000 to help with moving, rental, and other relocation expenses.

Bank of America Short Sale Eligibility:

You may be eligible for a short sale if:

• Your loan is owned by Bank of America or other participating investors.
• You owe more on your house than its current value.
• You’re experiencing financial hardship such as reduced income, medical expenses, divorce, or loss of employment.
• You’re unable to modify your current home loan, or don’t wish to remain in your house due to other circumstances, such as a job relocation.

Benefits of the Bank of America coop short sale incentive program include:

• You will not owe anything after the sale. Your lender will consider your loan “settled”.
• You will be able to avoid foreclosure.
• You will be in control of the time frames and your situation.
• The impact on your credit will be less than in a foreclosure.
• You will be able to purchase a home sooner than in a foreclosure.
• There will not be a public record on your credit.
• The sale can be handled discreetly.

You can read our full article explaining the benefits of a short sale here.

Stop A Bank of America Foreclosure

Bank of America can work with you to avoid foreclosure and see if there’s an option to keep your home. If you’re behind on your mortgage and not in forbearance, short sale, or loan modification, these may still be options to stop foreclosure. Even if the sale date is within days. So, it’s important to contact your servicer immediately or contact us today at 619-777-6716 or contact form and we will be in touch to discuss how we can help you.

How To Stop A Bank of America Foreclosure On Your Home

1. Work It Out With Your Lender
2. Request A Forbearance
3. Apply For A Loan Modification
4. Consult A HUD-Approved Counseling Agency
5. Conduct A Short Sale
6. Sign A Deed In Lieu Of Foreclosure
7. Contact Us Today to Work With Our Team of Attorneys to Stop Your Bank of America Foreclosure

Bank of America Forbearance Programs

Bank of America Forbearance programs are able to offer an initial payment deferral or payment forbearance for up to three or six months based on the requirements of the owner or insurer of your loan. After that initial assistance, additional extensions may be available for a total forbearance or deferral period of up to a maximum of 18 months based on the status of your loan.

The Bank of America Payment Deferral Program

This program is available for customers who currently have only one payment due on their loan. Bank of America will defer home loan payments for three months. In general, here’s how it works:

• Bank of America will defer three payments and extend the term of your loan by three months.
• Interest will accrue during this time period.
• After this initial payment assistance of three months, Bank of America will reevaluate your situation and if you are still financially impacted, they may extend your deferral period for up to a maximum of 18 months based on the status of your loan.
• If you’re able to make your payments during that time, continue to do so.

The Bank of America Payment Forbearance Program

This program is available for customers who have more than one payment due on their loan (for example, one missed payment and one payment currently due). Bank of America will work with you to understand your specific needs and provide a forbearance period of three months. In general, here’s how it works:

• After the initial payment postponement, Bank of America will reevaluate your situation with you and if you are still financially impacted, they may extend your forbearance period for up to a maximum of 18 months based on the status of your loan.
• At the end of your forbearance program, Bank of America will work with you on how you can make up the postponed payments. Options may include:
  • Repaying the missed payments at the end of the forbearance period
  • Setting up a repayment plan that allows you to make up the missed payments over a period of time while you are paying your regular monthly payment
  • Moving your missed payments into a deferred balance fully due upon the maturity date of your loan or earlier upon the sale or transfer of the property, refinance of the loan, or payoff of the interest-bearing unpaid principal balance
  • A loan modification may provide you with alternative ways of paying back the postponed payments through modifying interest rates or extending loan maturity dates
  • Paying your home loan in full
• If you’re able to make your payments during that time, continue to do so.

If a third party owns your loan (e.g. Fannie Mae, Freddie Mac) or if your loan is insured by a third party (e.g. Federal Housing Administration), Bank of America will follow their guidelines and offer you a payment forbearance.

Bank of America Short Sale Negotiators

If you have a loan with Bank of America and are considering a short sale or loan modification, make sure you are working with a real estate agent and short sale negotiator who is a Bank of America short sale specialist. Many companies and agents claim to be proficient in these types of sales, but few possess the knowledge and experience. Our team has negotiated over 3,5000 short sales and we have a working relationship with Bank of America.

Contact us today at 619-777-6716 or submit your information on our contact form and we will be in touch to discuss how we can help you.

 

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