Bank of America said Tuesday it’s launching a nationwide program that
pays homeowners as much as $30,000 to complete short sales.
The lending giant tested a similar program in Florida last year from
Sept. 26 through Nov. 30, and nearly 11,000 Florida borrowers verbally
agreed to complete their short sales by August of this year. So far, 847
of the deals have closed.
The average payment as part of the Florida pilot is $12,000, the bank said.
To qualify for the national program, a seller must work with Bank of
America to obtain a preapproved price prior to submitting an offer from a
prospective buyer. The short sale must be started by the end of 2012
and close by Sept. 26, 2013. Also, Bank of America must own and service
Homeowners who now are in the process of a short sale with Bank of America may be eligible for the program.
The amount of money homeowners receive “will be determined on a
case-by-case basis using a calculation that includes the value of the
home, amount owed and other considerations,” Bank of America said in a
For more information about the program, call (877) 459-2852.
In a short sale, a lender allows a borrower with a financial hardship
to unload the property for less than the mortgage amount. The
transactions are faster than foreclosures, helping banks get troubled
loans off their books.
In recent years, some banks have given a few thousand dollars to
borrowers who leave their foreclosed homes in good condition. Last year,
lenders started giving cash to homeowners who complete short sales as an incentive to cooperate.
Bank of America says it expects the national program to get the
greatest response from homeowners in Florida, California, Nevada,
Arizona and other states hammered by the housing crash.
BOA says the incentive is to help homeowners transition out of their homes when nothing else has helped.