CO-OP Short Sale Guideline Update

Bank Of America has updated their guidelines in regards to their Cooperative Short Sale program and foreclosure sale date holds.

How will this affect transactions?

Many agent’s often have  offers on the table, but will not submit them to the lender right away as they want to put the borrower through the CO-OP short sale program as it offers a relocation incentive to the borrower. If there is a sale date around the corner this is now more of a gamble as fighting for a sale date to get postponed with no offer being reviewed by the lender is often an uphill battle. It may be wise to consider submitting an offer and moving forward with a potentially non relocation incentive program to increase the chances of having the sale date postponed. Please see the update below which was provided to us directly from Bank Of America.

– January 17, 2013

The Bank of America Cooperative Short Sale Program may be able to help your clients complete a short sale if they owe more on their mortgage than their house is worth and do not qualify for the Home Affordable Foreclosure Alternatives (HAFA) short sale program. This program can streamline the approval process and offers financial assistance to help homeowners with relocation and moving expenses.

As of January 15, 2013, there will no longer be a temporary foreclosure hold during the Cooperative Short Sale property marketing phase. We may begin or continue the foreclosure process up until a submitted offer to purchase the property is approved by all relevant parties.  Any existing short sale will not be impacted by this change.”

For assistance or any questions in regards to a short sale please fill out the form below.

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