San Jose Short Sale

Bank of America Short Sales

All around the country people are experiencing the effects of today’s economy.  In particular, the current unemployment rates are at a record high with over eight percent of the population without a job.  When this information is added to the bottoming out of the real estate market over the past two and a half years, it can be easy to understand why people are finding it harder and harder to make their monthly mortgage payments.   Bank of America is trying to make the process of home relinquishment easier.  Their website has valuable information regarding programs designed to help a homeowner with a process called short sales.  The short sale process  when the lending institution agrees to take a lower amount as settlement on a larger debt.  In Bank of America’s case this arrangement will be reported to the credit bureaus as being a debt that is paid in full for less than the full balance.  In the long run this will help the homeowner as it will be easier to bounce back from this type of credit reporting over one that says the house was delinquent and foreclosed upon.

While there are two different programs through Bank of America for short sales, traditional and HAFA, one may be better than other for numerous reasons.  With a traditional short sale agreement the only truly negotiable elements in the contract are the avoidance of an eviction and the prevention of having the house sold at a public auction.  Also, this type of short sale may take longer as the process involves so much paperwork.  While the reporting on the credit report will remain similar, a traditional short sale does not have the benefits of a HAFA short sale.

HAFA stands for Home Affordable Foreclosure Alternatives.  This program was developed and implemented to help homeowners facing possible foreclosure.  Some of the benefits of this system include the temporary halting of the foreclosure process and a deficiency waiver.  A deficiency waiver is an agreement from Bank of America that the bank will not pursue legal action to recover the balance difference between the loan principal and the short sale amount.  In addition the Home Affordable Foreclosure Alternatives program may provide up to three thousand dollars to the homeowner to cover relocation expenses. 

In order to qualify for the Home Affordable Foreclosure Alternatives program with Bank of America the following requirements must be met.

1)The homeowner must contact Bank of America before they begin any short sale process.  This will give the owner and the bank time to discuss the circumstances instigating the short sale and to come to an agreement regarding the right course of action.  Being straightforward and honest with the lending company will increase a homeowner’s chances of approval and help defer foreclosure proceedings. It is also highly beneficial to be in contact with a San Jose CA short sale specialist so that they can inform you on what to expect during the short sale process

2)The home must be the current principal residence of the homeowner, Or in lieu of this situation, the home must not have been vacant or rented out for more than twelve months. If the home is vacant or being used as a rental property, it must be noted that the homeowner could not have purchased a second primary residence since vacating the home in question.

3)For a single family dwelling unit to be approved for a short sale through the Home Affordable Foreclosure Alternatives plan offered by Bank of America, the home must not exceed a value of $729,750.  If the dwelling is a multiple unit building than there are other value limitations.

4)The homeowner must be able to prove through analysis and paperwork that the amount they owe is greater than the fair market value of the home.  This can be accomplished by retaining the services of a skilled and knowledgeable Short Sale Specialist Realtor that is well versed in short sale agreements.

5)Finally, the homeowner must provide proof that they are experiencing a financial hardship.  Bank of America considers unemployment, divorce and medical emergencies to be hardships. However, dishonest dealings and criminal behavior will not be forgiven or used for financial hardship status.

Once Bank of America has determined that the dwelling and the homeowner are eligible for a short sale process, then there are further stipulations. Traditionally, Bank of America will allow up to one hundred and twenty days for the homeowner to market and sell their home.  Throughout this time it is imperative that the seller maintains constant contact with the lending institution.  The more communication that is provided, the more likely the bank will continue to work with the homeowner if contingencies or unexpected occurrences arise.  As a homeowner finds himself trying to avoid possible foreclosure, it would be in his best interest to contact a real estate professional first and Bank of America second to begin the short sale process. Our short sale specialists are highly experienced and know how much you would like to move on with your life, so contact us and let us help you get back on track!

www.Short-Sale-Specialists.com

877-737-4903

For more information on the short sale process or to receive a free evaluation of where your home stands in today’s market, fill out the form below.

Do you need a California short sale Realtor to help you with your short sale? Our Specialists offer FREE short sale expert services to San Jose homeowners in hardship. Contact us today to see if you qualify for a San Jose CA short sale! Searching for a San Jose CA Distressed Property Expert Certified in short sales to offer free Broker short sale services? Our San Jose area Distressed Property Expert Certified real estate agents are here to help, and are Certified or training in the California Home Affordable Foreclosure Alternatives, or HAFA Government short sale program.

Our organization does not directly offer short sale or foreclosure rescue services in the state of California.

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