Tuesday, May 15, 2012

Bank of America now paying as much as $30K after short sale

Bank of America announced Tuesday that it will now pay as much as $30,000 in relocation assistance after a short sale under a new nationwide program.

In the past, the bank had traditionally paid about $1,500 to $2,000 in assistance. In the new program, Bank of America will pay between $2,500 and $30,000.

“Bank of America is committed to providing alternatives to foreclosure whenever possible,” Bob Hora, home transition services executive, said in a statement. “This program can help customers make a planned transition from ownership when home retention options have been exhausted or they have made a decision not to keep the home.”

The Charlotte bank tested a similar program in Florida late last year, offering between $5,000 and $20,000, with mixed results.

Bank of America completed 30,000 short sales in the first quarter of this year, and 200,000 through 2010 and 2011.

To qualify for a payment, the homeowner must work with the bank to reach a preapproved sale price. The sale must be underway by the end of 2012 and close before Sept. 26, 2013. Some short sales already initiated may be eligible for the increased payment, the bank says.