Bank of America has launched a nationwide program that offers delinquent mortgage customers increased assistance with relocation expenses—between $2,500 and $30,000—at the completion of a qualifying short sale. The short sale relocation assistance program builds on the bank’s short sale initiatives, which led to 200,000 completed short sales in the last two years and another 30,000 in Q1 of 2012. This program is based on a similar incentive offer that Bank of America tested in Florida last year.
“Bank of America is committed to providing alternatives to foreclosure whenever possible,” said Bob Hora, home transition services executive for Bank of America. “This program can help customers make a planned transition from ownership when home retention options have been exhausted or they have made a decision not to keep the home.”
In order to qualify for the enhanced relocation assistance payments under the new program, the seller must work proactively with the bank to obtain a preapproved sales price prior to submitting a purchase offer to the bank. A short sale must be initiated by the end of this year and close by Sept. 26, 2013, to be eligible for the payment. Qualifying short sales that have already been started, but have not closed may be eligible for the relocation assistance.
The amount of assistance provided under the new program will be determined on a case-by-case basis using a calculation that includes the value of the home, amount owed and other considerations. Initially, the program will be offered on mortgages that are owned and serviced by Bank of America.
While available nationally, Bank of America anticipates greatest response to the program will come from borrowers in California, Nevada, Arizona, Florida and other states hardest hit by the economic downturn and falling property values.
