Bank of America Cooperative Short Sale Program Guidelines and Information
Bank of America Co-op short sale program and guidelines 2013
In an attempt to help prevent more people from going to foreclosure, Bank of America has been beta-testing a pilot program called the cooperative short sale program for the last year and a half. The program has worked so well that they have now started to institute it on a broader scale. Cooperative short sales take less time, and generally require less paperwork. Cooperative short sales also offer relocation money above the typical $3000 offered through programs like HAFA. Here are a couple of key points for both realtors and homeowners about the program:
Highlights of the program:
1. Most cooperative short sales from BOFA fully release the homeowner from deficiency.
2. Most cooperative short sales take only 30-45 days to negotiate; I have had some that took only two to three weeks.
3. Cooperative short sales offer a chance to get relocation money ranging from $3000 up to $30,000. Yes, that is correct, they are giving people up to $30,000 to participate in a short sale through this program.
4. Bank of America will do a valuation on the property and inform you of where their valuation came in.
5. The co-op program allows for a price reduction every 21 days.
How you get into a Cooperative short sale:
1. If you are a homeowner who is behind on your payments, and you have a loan with BOFA, open all of your mail from BOFA. The cooperative short sale is sometimes solicited directly to the owner of the property, and may only be offered once, with a limited time-frame to reply. If you disregard mail from BOFA you could possibly miss your chance to get fully released from liability, and miss your chance to get a significant amount of relocation money. They may also contact you via phone, so answer their calls as you do not want to miss your opportunity.
2. If you are contacted, be sure to request the Cooperative short sale program and fill out all paperwork. If you happen to receive correspondence or BOFA reaches out to you via phone, tell them you would like to pursue a Cooperative short sale. If you contact a realtor and you have a BOFA loan and you have not been solicited directly by BOFA have your realtor request to have you placed into the cooperative short sale program. Please note that not every loan can qualify: FHA, VA, and USDA loans currently do not participate in the Cooperative program.
3. If you do qualify for the program have your realtor ask for a higher relocation amount. To get a higher relocation amount your realtor needs to ask for it; sometimes they will offer it up front, sometimes they won’t. To be on the safe side, always ask for it!
These are just a few key points; if you are struggling to make your mortgage payments and would like to find out if you could qualify for this program or one of the many programs out there to help you avoid foreclosure, please contact me today as this is one of the most beneficial programs currently on the market to help you if you want to proceed with a short sale, and you can potentially get a substantial amount of relocation money.