Bank of America has announced the launched of its nationwide program that offers delinquent mortgage customers assistance of between $2,500 and $30,000 at the completion of a qualifying short sale.
This nationwide program, one of the bank’s initiatives to prevent foreclosures, is similar to the bank’s incentive program piloted in Florida last year.
Bob Hora, home transition services executive for Bank of America, in a statement said, “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 bank, which is one of the nation’s biggest mortgage servicers, reported that 200,000 short sales have been completed in the last two years and an additional 30,000 completed in the first three months of 2012.
To qualify for Bank of America’s short sale assistance, the short sale must be initiated at the end of 2012 and close by September 26, 2013. Also eligible for this short sale assistance are those qualifying short sales that have already been started but have not closed.
As to the exact amount of assistance, this will be assessed on a case to case basis, taking into consideration the amount owed, home value and other factors.
CNN Money reported that Chase also started a similar foreclosure prevention initiative in late 2010 and gives assistance of up to $35,000 to short sellers. CNN Money added that Wells Fargo has a similar initiative, giving five-figure assistance to short sellers.