Bank of America may pay you cash to short sale your house. The payment is an element of BOA’s pilot program to encourage short sales called their “Cooperative Short Sale Program.
Bank of American is working with selected real estate brokers to solicit eligible homeowners with BOA mortgages. BOA solicits selected homeowners for the short sale promotion and incentive. You cannot apply; you have to be asked.
I know the owner of a Remax franchise in Orlando who is one of the brokers BOA is using to approach eligible homeowners and to list their homes for sale. He states that BOA’s cash incentives to homeowners are in the range of $10,000 to $20,000.
Homeowners must demonstrate financial hardship and inability to afford payments. Obviously, the homeowner must cooperate with sales efforts, pay currently all home expenses, and maintain the house in good condition. Upon completion of the short sale BOA will waive deficiency judgments and report to the credit bureaus that the mortgage was resolved in a short sale.
I have written several times in prior post about attorneys and “mortgage experts” who pronounced dire predictions about mortgage lenders eventually getting tough with borrowers. I have heard scary predictions in private communications, and I have read the predictions in national publications.
The BOA program is evidence that mortgage lenders do not intend to wage war against defaulting borrowers, and instead, they may have decided it is in their best interest to seek homeowner’s cooperation to liquidate real estate at the highest price with the least expenses and delays. The Cooperative Short Sale program illustrates a significant change in mortgage company policies toward delinquent homeowners