Short Sale Relocation Assistance Program

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1 Short Sale Relocation Assistance Program A guide for real estate professionals October 2015

2 Short Sale Relocation Assistance Some of our programs may offer relocation assistance for your clients who are experiencing financial hardship and want to avoid foreclosure. Here s how we can help them: Qualified homeowners could be eligible to receive relocation assistance 1 Homeowners could sell their property and may not be required to pay any mortgage deficiency If homeowners are eligible to participate, they will be notified through the home retention review after the sale has been initiated; if they have chosen to come directly to a short sale without being evaluated for home retention options first, they will be notified when the sale is initiated 2 1 Please note that relocation assistance is calculated based on the valuation of your property and the terms and conditions of the short sale program. To receive the relocation assistance, the property must close by the closing date of the final approval letter. Bank of America reserves the right to change or alter the relocation assistance at any time.

3 Determining your clients eligibility Evaluating eligibility Once the short sale is in process, we will evaluate the homeowner s loan and situation to determine if they qualify for relocation assistance. The homeowner must participate in one of the eligible short sale programs. Specific investor participation and eligibility criteria apply to these programs. The relocation assistance will be paid at closing, depending on investor guidelines. Questions? Homeowners and agents may call their Customer Relationship Manager at to speak to a Bank of America short sale specialist about this program. Note: HAFA (Home Affordable Foreclosure Alternatives) may also be available if you already have an offer. 3

4 Frequently asked questions 1. How can I find out if my client qualifies for this offer? Call your Bank of America Customer Relationship Manager (CRM) at Do I have to do anything special for my client to participate? No. Once the short sale is in process, Bank of America will evaluate the homeowner s loan and situation to determine if they qualify to participate. Beginning the short sale process before an offer is received will help make sure this program is available to your clients. (Bank of America reviews all short sale files to determine if the homeowner is eligible for relocation assistance.) 3. If a short sale is initiated with an offer, will it qualify for this relocation assistance? Borrowers who qualify for HAFA may be eligible for relocation assistance if they initiate a HAFA short sale with an offer. Fannie Mae & Freddie Mac do not participate in this program, but customers may receive assistance under their own investor program(s). 4

5 Frequently asked questions, continued 4. Will the relocation assistance funds be reported on the Closing Disclosure? Yes. Funds received at closing will be documented on the Closing Disclosure, and a 1099-MISC will be issued. 5. Can the relocation assistance funds be used to pay off existing liens? Depending on the investor type, homeowners may use funds to pay off existing liens or to help with relocation expenses. Work with your short sale specialist to determine which liens can and cannot be paid off using funds from relocation assistance. 5

6 Service release During the short sale process, loan servicing may be transferred to a different loan servicer. Servicing refers to collecting principal, interest and escrow payments, if any, as well as sending monthly or annual statements, tracking account balances and handling other aspects of the loan. We may assign, sell or transfer the servicing of a loan at any point while the loan is outstanding. Your client will be given advance notice before a transfer occurs. Depending on the status of the short sale when the servicing of a loan is transferred, the new servicer may not be required to accept the terms and conditions of a short sale. 6

7 Let s work together By working together, we can make the short sale process more understandable and efficient, and help your clients have a better experience. Additional resources For real estate professionals Agent Resource Center For homeowners Home Loan Assistance Customer Relationship Manager

8 Programs, rates, terms and conditions are subject to change without notice. Bank of America, N.A., Member FDIC. Equal Housing Lender. AR8GFX8K C35454 PRES A