Bank of America is offering up to $20,000 to people who will put their house up for sale if it is in the foreclosure process. Bank of America contends that thousands of people will benefit from the the new program. To date, only 60 Floridians have received anything from BOA (BAC) through the program. The program lasts until August of 2012 and the hope is there will be thousands more who will take advantage of the program.
Bank of America said that the program is being offered to qualified homeowners (homesteaded properties) who will list their property and get an offer that is acceptable to the bank. The owners would get 5% of the unpaid mortgage balance as of August 2011, with a minimum payment of $5,000 up to a maximum payment of $20,000. The guidelines state that the sales price will not impact the payout. My guess is that the rules and guidelines are a moving target and in flux.
Why is Bank of America offering the incentive? The goal is to save the lender thousands of dollars in attorney fees, taxes, carrying costs if it goes to foreclosure, damages to the house that hurt the value, and court costs. It also helps the bank get their bad loans off the books.
I guess you have to make a decision as to whether it is worth it to try the program. If you are paying $5,000 and can fight the foreclosure for 3 years, it may not make sense to try the program. But, if you are along in the foreclosure process, it might make sense to give the program a try.
The other aspect of the program that might be more appealing is the fact that the bank may waive the deficiency. If that is the case, that would be a win win situation for a homeowner.
If you want to discuss your options, feel free to email me and I can put you in touch with a foreclosure attorney.
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