Finally good news for Florida’s distressed homeowners: Florida is a test state for a trial program of Bank of America.
Yes, it’s true, Bank of America is offering Florida homeowners up to $20,000 to short sale their homes rather than letting them linger in foreclosure.
Only 3 Weeks Left to Apply!
Only homeowners whose short sales are submitted for approval to Bank of America on or before November 30, 2011 will qualify. The homes must have no offers on them already and the closing must occur before August 31, 2012. So eesentially, if your loan is with Bank of America and you list your home for sale by the November deadline, you qualify for the program.
Here is how the payout amount will be calculated:
Unpaid Principal Balance X 5%.
The maximum payout is $20,000*, the minimum payout amount is $5,000.
Why are banks doing this?
They want to avoid dealing with all those vacant, half destroyed properties that sit in the market for up to 2 years as foreclosures before finally selling. The foreclosure process costs banks far more than a short sale. When lawyers get involved the foreclosure process can be even extended to 4 years! On top of that some frustrated homeowners have been known to steal appliances and other fixtures, or damage the home to get back at the bank. Most banks easily put in $20,000 to fix up a foreclosed house before selling it and it’s a no brainer for banks to offer this incentive to homeowners.
With this “bribe” Bank of America wants to make sure the borrower leaves the house in good condition and in an orderly fashion.
No wonder banks are being creative these days – and you, the homeowner, can finally take advantage of this real estate market. The banks biggest motivation is to get homes off the books – quickly!
Best of all, similar to the HAFA (Home Affordable Foreclosure Alternatives) program, which offers $3,000 in relocation assistance, the Bank of America program may also waive a homeowner’s deficiency judgment (the difference between what the house sells for and what is still owed on the loan) at closing.
On all of our recent short sales we were able to negotiate those terms for our customers so there truly is a very good chance that you will walk away completely debt free! It will be as if you had never owed your home.
Does that mean you will be able to take advantage of the incredible low prices and mortgage rates here in Central Florida and purchase a new home right away?
If any financing is involved in the purchase of your new home, you will have to wait 2-3 years.
However, there are private lenders who wil lend money already after 6 months (in some cases less). The rates though are high, currently around 11%, and you will have to put a minimum of 35% down.
Obviously, if you were to buy your new home cash, you can do that anytime!
Bank of America’s plan excludes Ginnie Mae, Federal Housing Administration and VA loans.
Your mortgage is not with Bank of America? Do not worry, Wells Fargo and J.P. Morgan Chase have similar short-sale programs! In fact, Chase announced a bonus payment to home owners of up to $35,000!
We will be able to give you the details on those programs on a case to case basis because more conditions apply. Please contact us about that at 407-340-6458 or by simply entering your questions in the comment box below and we will be in touch!
About our Short Sales Team:
We have been helping distressed home owners in Sanford/Lake Mary for several years now. Since 2008 we have sold over 40 properties as short sales – some of our past clients in fact have already purchased a new home since short selling their old one.
Jose has been certified by the industry’s most renowned organizations. He holds the CDPE (Certified Disressed Property Expert) designation and the Equator Platform Platinum and Short Sale Agent Certification which less than 1% of all agents have completed. Over the years he has worked wiht all major and dozens of the smaller banks and lenders.