Bank of America Offering New Options to Struggling Homeowners
Given the increase in foreclosure filings in New Jersey, homeowners may be interested to know that banks are currently carving out new ways to help mortgage-borrowers in financial distress. For instance, our New Jersey real estate attorneys work with Bank of America to allow homeowners to be part of the Home Affordable Foreclosure Alternatives (HAFA) Program. HAFA was first introduced by the U.S. Treasury Department as an option for struggling homeowners. As part of HAFA, homeowners who qualify may have the option to take part in a Preapproved Price Short Sale, which is a short sale initiated by the homeowner before receiving an offer from the bank.
Benefits of a Preapproved Price Short Sale
A Preapproved Price Short Sale occurs when the homeowner decides to do a short sale and then contacts the lender (like Bank of America), which will work to preapprove the sale. In a short sale, your lender will often accept less than the total amount due on your home. With a Preapproved Price Short Sale, the homeowner acts before even receiving an offer from the bank and is then able to put his or her house on the market in accordance with the terms agreed to with the lender.
Our Burlington County foreclosure attorneys know that one benefit of a Preapproved Price Short Sale is that homeowners are engaged earlier and given faster decisions from the lender. Since foreclosures can take over a year in court, the speed at which the lender gives you a decision in the Preapproved Price Short Sale could help reduce stress throughout this process. Most importantly for homeowners, the deficiency in their mortgage might be waived by participating in the program. In some cases, a hold on the foreclosure filing may be available to families.
A benefit of the Preapproved Price Short Sale is that the burdens of promissory notes or cash contributions might be extinguished. In some short sales, the lender may ask for the seller to contribute cash to the sale or require a promissory note—which is a contract where the homeowner agrees to pay the deficiency between the amount owed on the house and the sale price of the property. With a Preapproved Price Short Sale, Bank of America may waive the cash contribution or promissory note, which would greatly benefit many families considering this option. In addition, Bank of America is offering monetary relocation assistance to some families.
Is a Preapproved Price Short Sale the Right Option for Your Family?
Because there are many benefits to the Preapproved Price Short Sale, you may want to consider this option if you are a homeowner struggling to make your monthly mortgage. Our New Jersey real estate attorneys know that this offer is only available for a limited time with Bank of America. In addition, not all homeowners will qualify. To find out if you are eligible, contact our qualified Moorestown foreclosure attorneys who can work with you to determine the best option for your family.