Bank of America has announced a co-op short sale program, targeted at homeowners who have failed to qualify for mortgage modifications under HAMP or HAFA.
BofA is launching the new program with 2,000 homeowners who have already been pre-screened because they applied for mortgage modifications under HAMP or HAFA. The bank is offering them the short sale as an alternative to foreclosure.
Letters to homeowners asking them to participate in the new short sale program have been sent out. They have 120 days to list their property. BofA says it will assign a short sale specialist to work with homeowners and their real estate agents on each short sale.
Once the home is sold, the homeowner gets a $3,000 relocation fee, and the agent receives a six percent commission on the sale. If the home does not sell, the bank will accept a deed-in-lieu of foreclosure. BofA is also waiving deficiencies.
To learn more about the program, go here.