On Tuesday, Bank of America decided to launch their test
Short Sale incentive program taking it nationwide and offering cash to many troubled
homeowners unable to take part in the trial program. The offer could pay a
delinquent homeowner as much as $30,000 if they agree to complete a short sale.
It seems that BofA has finally figured out that going through the
foreclosure process and taking the home back, is costing them more money in the
long run.
When people go into foreclosure, they generally do nothing
to take care of the home. Some walk away taking light fixtures, appliances,
cabinets- even sinks and toilets. Others who are angry about their situation do
major damage to the house. These cost the bank ten’s of thousands of dollars by
either forcing them to fix up the property so an owner occupant will buy it, or
deeply discount the house so an investor will be able to purchase, rehab, and sell
for a profit.
The program was tested in Florida between Sept. 26th and Nov.
30th of last year, and nearly 11,000 Florida borrowers, some in the
Tampa Bay real estate market, verbally agreed to complete their short sales by
August of this year. So far only 847 of those short sales have closed and according to BofA, the average payment to
cooperating homeowners in Florida was $12,000.
How to Qualify:
The seller must work with Bank of America to obtain a preapproved
price prior to submitting an offer from a prospective buyer.
The short sale must be started by the end of 2012 and close by Sept.
26, 2013.
Bank of America must own and service the mortgage.
Some Homeowners currently in the process of a short sale
with Bank of America may be eligible for the program as well and the amount of money
the homeowners receive “will be determined on a case-by-case basis using a
calculation that includes the value of the home, amount owed and other
considerations.”
For more information about the program, call (877) 459-2852.
This short sale program could help reduce the number of
distressed homes in Tampa and the surrounding areas. Nearly two thirds of the
homes under contract in Hillsborough, Pinellas, and Pasco counties are Short
Sales. A very small number, only 9% on average, of those homes actually
close on a monthly basis. If more lenders were to get on board with this type
of program, they would save themselves a lot of money and it would help stabilize prices
in some of the areas hardest hit neighborhoods.
Tony Delgado-RE/MAX Bay to Bay-South Tampa