Bank of America is offering homeowners up to $30,000 to sell their homes in a short sale.
The nationwide program, announced this week, is the expansion of a pilot program that started in Florida last year. That program offered homeowners $5,000 to $20,000, with the average payout being $12,000.
The new program offers homeowners $2,500 to $30,000 in “relocation assistance.”
To be eligible for the new program, homeowners must owe more than their property is worth — the reason they would do a short sale as opposed to a regular sale — plus their loan must be owned and serviced by Bank of America.
New rules may speed short sales
The amount of the payment is at the discretion of the bank. A Bank of America news release says it will be “determined on a case-by-case basis using a calculation that includes the value of the home, amount owed and other considerations.”
New short-sale rules may help sellers
To get the payments, homeowners must initiate the sale by the end of 2012 and close by Sept. 26, 2013. In addition, the homeowner is required to work with the bank to set a preapproved sale price before the home is listed for sale. However, homeowners currently in the short-sale process may be eligible for the payments. Information for homeowners is here.
Other lenders also have offered homeowners financial incentives to complete short sales, which they find cheaper and easier to manage than foreclosures. Plus, the home is usually left in better shape and the process is more orderly. But the incentive payments have not been common up to now.
As the number of short sales grows, such payments may become more common.
The federal Home Affordable Foreclosure Alternatives program offers homeowners $3,000 in relocation incentives to do a short sale.