Bank of America Offer More Help to Distressed Borrowers
The need for alternatives to foreclosure has lead the government and mortgage companies to develop new plans for homeowners in distress.
As part of this wide strategy the Obama Administration has released the Home Affordable Foreclosure Alternatives (HAFA) program for homeowners who are Fannie Mae or Freddie Mac borrowers. New rules for the program offer helpful incentives for many families to pursue short sales as an alternative to foreclosure. New Jersey homeowners are advised to seek counsel from an attorney focusing on New Jersey real estate to gain more details about the options.
But it isn’t just the government that is working to help those in trouble. Private lenders are also crafting different solutions offering very favorable terms to help homeowners avoid foreclosure. For example, Bank of America recently released new details of a program that may be a lifesaver for those worried about keeping up with their mortgage.
Changes to Equator: BofA’s Short Sale Management Platform
Equator’s new task flow pushes towards one purpose: saving time in the short sale procedure. Short sale specialists now complete all tasks simultaneously–that is, document collection, valuations and underwriting—subsequently reducing the decision times for short sale offers from 45 days down to 20 days.
In order for Equator’s changes to take place, BofA instituted new forms to accompany a submission for short sale initiated with an offer:
· A purchase contract including buyer’s acknowledgment and disclosure.
· IRS Form 4506-T.
· Bank of America short-sale addendum.
· Bank of America third-party authorization form.
The Third-Party Authorization Form is a new standardized document requiring signed acknowledgments from all borrowers and designated representatives in a short sale.
BofA’s Preapproved Price Short Sale
A preapproved price short sale is an additional tactic for borrowers. In a short sale, the mortgage company gives the homeowners the right to sell the property for a lesser amount than what they owe. Through its preapproved short sale system, BofA recognizes the right of borrowers to decide to short sell their property and then informing the bank before receiving an offer. In addition, with a preapproved price short sale, BofA may waive deficiency judgments, promissory notes, or any cash contribution from weighing on the borrower.
BofA’s New Relocation Assistance
If you are a BofA mortgage owner and planning a short sale, don’t miss out on the Bank’s limited offer for relocation assistance. Bank of America is now offering enhanced relocation assistance payments in which qualified homeowners who start a short sale without an initial offer could be eligible to receive $2,500 to $30,000 in relocation assistance and receive a forgiveness of the shortage on their debt –that is the difference between the amount of the sale and their debt with the lender.
In order to qualify for this assistance, the homeowner must participate in one of the preapproved price short sale programs, such as HAFA or Bank of America’s proprietary program.
There is a good chance that a short sale will fall through if the process is not followed to the letter.
That is why it is crucial for all involved parties to be familiar with the system. If you are a New Jersey homeowner and want to more about these options, our Burlington County foreclosure attorney can shepherd you through the process.