$20,000 Incentive for Bank of America Short Sales!

Here is an email we just recieved from Bank of America. For short sales with Bank of America in the state of Florida, they are now offering up to $20,000 for sellers to participate in a short sale in many cases. With this program, Florida home owners can get cash back for a short sale with Bank of America! Here is the complete email -

Florida Agents:
Florida Enhanced Short Sale Relocation Assistance
Florida homeowners may receive $5,000 to $20,000
in relocation assistance.

Bank of America encourages distressed homeowners to explore a short sale as a viable option for avoiding foreclosure. To that end, for a limited time we are offering enhanced relocation assistance to help
motivate homeowners to engage with us on a pre-offer short sale. An
additional benefit for these pre-offer programs - such as the Home
Affordable Foreclosure Alternatives (HAFA) and Bank of America's
proprietary program - is that deficiency may be waived for the
homeowner.

Eligibility:

Homeowners with property in Florida
Short sales initiated without an offer between September 26 and November 30
The customer will have to be eligible for one of the without offer programs such as the HAFA program or our proprietary program (specific investor participation and eligibility criteria do apply to these
programs)
Successful closing of the eligible short sale by August 31, 2012
Minimum relocation assistance is $5,000 and maximum is $20,000, with the specific amount calculated based on the unpaid principal balance

Exclusions:

Ginnie Mae, FHA, VA and USDA loans are ineligible for participation
Lot loans are ineligible for participation
Properties outside the state of Florida are ineligible for participation
Short sales initiated with an offer are not currently eligible for the enhanced relocation assistance

Frequently Asked Questions:

Q: How can I find out if my client/homeowner qualifies for this relocation assistance?

A: Call a Bank of America short sale specialist at 1.877.459.2852.
Monday - Friday 8 a.m. - 10 p.m.; Saturday 9 a.m. - 5:30 p.m. Eastern

Q: Do I have to do anything differently when initiating or completing the short sale?

A: No. As long as the homeowner's short sale is initiated between September 26 and November 30, 2011, and the property closes by August 31, 2012, they
will be eligible.

Q: Will the relocation assistance funds be reported on the HUD-1?

A: Yes, they will be documented on the HUD-1, and a 1099-MISC will be issued.

Q: Can the relocation assistance funds be used to pay off existing liens?

A: Yes, if the investor approves it.

Q: Is the relocation assistance added to any other incentives, such as the HAFA or Bank of America proprietary program incentives?

A: No. A homeowner will receive the $5,000 to $20,000 in place of the typical incentive paid out by these programs. The relocation assistance is
essentially an enhancement to the standard payout offered on these
programs.

Q: Is the enhanced relocation assistance available for other programs?

A: Currently, the enhanced relocation assistance is only available to short sale programs initiated without an offer. However, as we gauge the success we may extend this incentive to other programs.

Questions?

Homeowners and agents may call 1.877.459.2852 to speak to a Bank of America short sale specialist about this exciting relocation assistance offering.

Visit the Agent Resource Center at bankofamerica.com/realestateagent for additional short sale education, news and resources to help you complete short sales at Bank of America.

* The relocation assistance payment is calculated based on the unpaid principal balance of the homeowner's loan and the type of short sale
that the homeowner completes, but will not be less than $5,000 or more
than $20,000. The payment amount will be calculated based on the
homeowner's loan balance as of August 2011 and the short sale program in
which the homeowner is eligible. The payment will be delivered at the
time of closing if the homeowner complies with all terms and conditions
of the Short Sale Agreement, including the satisfaction of all second
liens and presentation of clear title for the property (the relocation
assistance payment can be used to clear those liens). If the homeowner
does not comply with all terms and conditions of the Short Sale
Agreement, the homeowner will not receive the relocation assistance
payment. Even if the homeowner receives relocation assistance, Bank of
America, N.A., and their successors and assigns may reserve and retain
the right to pursue collection of any deficiency following the
completion of the short sale, unless otherwise prohibited by law. The
amount of the deficiency and relocation assistance will be reported to
the Internal Revenue Service (IRS) on the appropriate 1099 Form or
Forms. We suggest that homeowners
contact the IRS or their tax preparer to determine if they have any tax
liability. This offer is for Florida properties only. To receive the relocation assistance, the property must close by August 31, 2012.

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as well as our listing referral program and online training course!

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Replies

Mike Linkenauger November 1, 2011 at 9:05am

Either way it is a start. Hopefully they will expand it to include any loan that they are the investor on.
Rose Mencia October 21, 2011 at 3:40am

I understand it only applies to a very small group of owners--- loans in the Bof A portfolio or their private investers..... I heard it dosnt include any loans sold to fannie,freddie, fha.... etc...... super narrow group.. I signed up for a cdpe B of A webinar on the 26th.... should answer more!! will bring back info....
Mike Linkenauger October 18, 2011 at 1:36pm

It really does REWARD irresponsibility to some degree. But it is the ONLY way they see fit to keep home owners from "Milking" the situation for years and ultimately costing Bank of America and tax payers much more money.
Tara Nagelhout October 16, 2011 at 1:30pm

This really irritates me! I figured they were doing it because it was a way to get around having to foreclose since Florida is such a mess. How about this though? Lower existing rates, equity or not. Lower existing rates, as long as you are current...regardless of ability to document income. Reward home owners who are paying their mortgage and can't refinance due to credit or lack of equity. STOP rewarding those are not paying!!!
Mike Linkenauger October 14, 2011 at 7:50am

I just had a conference this morning with one of the execs at Bank of
America, and he said that for the time being, they only have plans to do
this program in the State of Florida. This is more of a "test" to see
if it works, and they choose Florida because of 1.) The Amount of Short
Sale activity in the state, and 2.) The foreclosure process and
timelines in the state of Florida are VERY long compared to much of the
country. I'm sure if they have success with this program they will
consider doing it in other parts of the country as well.

Mike

This reply was deleted.