Yes I know, it sounds like an oxymoron, however, Bank of America is one of my favorite lenders to work with on short sales and I’m really excited about this new short sale option. I’ve had really good outcomes working with Bank of America. I have always gotten deficiency rights waived without any monetary contribution from the borrower, whether it’s a primary residence or investment property. I like the Equator system and if I have any issues, I know who to call (or tweet). I just learned that it can be even easier to work with Bank of America. I received a phone call yesterday informing me that my client had been preselected for the Cooperative Short Sale Program. I was thrilled. I had heard about this new program but there didn’t seem to be any rhyme or reason to who got selected and what the criteria was for eligibility.
What makes this program so exciting? It’s very similar to HAFA but without all hurdles and red tape and prevent HAFA short sales from being successful. (I hate HAFA) In a Cooperative Short Sale, the property is listed for sale at fair market value. You have 4 months to sell the property. If the property is sold, the proceeds from the sale are used to pay off the mortgage debt, even if the proceeds are less than the amount owed on the mortgage (short sale). The borrower may be eligible to receive relocation assistance of $2,500 to help with moving, relocation and rental expenses. And best of all, Bank of America will not pursue the deficiency balance on the loan. I just faxed in the required paperwork (only 2 forms) so we’ll have to wait and see how it goes but I am optimistic.