Bank of America Home Affordable Foreclosure Alternative (HAFA) Matrix If you do not qualify for the Home Affordable Modification Program (HAMP) or other modification programs that we offer, you will be considered for other foreclosure prevention programs, such as short sale or deed in lieu of foreclosure. You must meet the eligibility requirements and follow the terms and conditions detailed below. The U.S. Department of Treasury asked Bank of America to complete this matrix to help borrowers understand the Home Affordable Foreclosure Alternatives (HAFA) program offered by Bank of America. The U.S. Department of Treasury is not confirming whether the information provided below is in compliance with the Treasury s policies or guidance for HAFA. The Treasury also does not endorse the information described below. You should contact Bank of America if you have questions about the information in this matrix. ELIGIBILITY REQUIREMENTS Last Updated: August 14, 2015 HAFA Basic Eligibility You may be eligible for a Home Affordable Foreclosure Alternatives (HAFA) short sale if: Your took out your first mortgage before January 1, 2009 Your first mortgage is past due or you believe that you ll miss a payment soon (loan can be current)the amount you owe on your mortgage is equal to or less than: 1 Unit: $729,750 2 Units: $934,200 3 Units: $1,129,250 4 Units: $1,403,400 The property isn t condemned Your first mortgage isn t made to or owned by a corporation, partnership, limited liability company or other business entities You must have an eligible hardship. For example, an eligible hardship may be: o Your property has a combined loan-to-value (CLTV) greater than 100%. This means the balance of your loan is greater than the current value of your property o You have demonstrated that you can t make your current payments o Your FICO Credit score is lower than 620 You haven t been convicted within the last 10 years of felony larceny, theft, fraud or forgery, money laundering or tax evasion, in connection with a mortgage or real estate transaction In addition to the basic eligibility requirements above, we ll need the approval of the owner of your loan and/or the company insuring your mortgage (you may hear the owner of your loan referred to as your investor ). Bank of America services mortgages for other parties who actually own the loan, and each owner has different requirements. If you have mortgage insurance on the loan, they may also have different guidelines.
Loans in foreclosure: We will make every attempt to review your loan for some form of a modification or foreclosure alternative such as short sale or deed in lieu before we initiate a foreclosure. If, however, your Loan is in foreclosure, to be considered for a HAFA short sale: Without a an offer on the property from a buyer- your request must be received greater than or equal to 60 calendar days from the foreclosure sale date (if applicable). With a an offer on the property from a buyer- your request must be received greater than or equal to 7 calendar days from the foreclosure sale date (if applicable). Program Expiration Date: You must request (phone, mail, fax, or email) to be evaluated for a short sale or deed in lieu, or submit a signed offer for a short sale on or before December 31, 2016. The closing date must be on or before September 30, 2017. Please note that the written request must include a postmark such as a date or time stamp, providing proof that the request was made prior to December 31, 2016. Second Lien Release Incentive In addition, the investor on your loan may allow up to $12,000 from the sale of the property to help satisfy all subordinate liens, such as a home equity loan or line of credit, the $12,000 will be deducted from the gross sale proceeds to pay subordinate lien holders and release their claims on the property. Relocation Assistance: After the short sale is complete, you, a tenant or other occupant who is not a borrower (such as a legal dependent, parent or grandparent who is living in the property for free) may receive $10,000 to assist with moving, rental and relocation expenses. The closing agent will be instructed to pay you from the sale proceeds at the same time the closing agent makes all other payments, including the payoff of the mortgage. A maximum of $10,000 is paid per household, regardless of the number of borrowers or tenants. The payment may not be used for the release of a home equity loan or line of credit, or any other claims against the property such as past due property taxes or homeowners association dues. If you seek relocation assistance for a tenant or other occupant who isn t a borrower on the loan, you must prove that they live in the property as a principal residence as of the date you requested a short sale, deed in lieu, or approval of an executed sales contract. You may include lease agreements, utility bills, etc. Before the closing date, you must provide a Non-Borrower Occupant Certification that s signed by each occupant who will receive relocation assistance. A copy of the Non-Borrower Occupant Certification will be mailed upon request.
Your real estate agent will need to upload the information into the Short Sale Processing System no later than 15 calendar days prior to the closing of the short sale or deed in lieu. If the complete Tenant Package isn t received 15 calendar days prior to the closing, the relocation assistance won t be approved. DOCUMENTATION REQUIREMENTS HAFA is one of many options for which you may be considered to avoid foreclosure. You will be asked to provide income, tax forms, a hardship letter and other documentation. Signed Request for Mortgage Assistance (RMA)/Hardship Affidavit form Utility bill (gas, electric, water), if requested A signed, dated copy of IRS Form 4506-T (Request for Individual Tax Return Transcript) for all borrowers (Borrowers who filed their tax returns jointly may send in one IRS Form 4506-T signed and dated by both joint filers) A copy of personal federal tax returns for the previous year (all pages signed and dated) for all borrowers A completed copy of the two most recent W-2 tax forms Two most recent, consecutive bank statements showing 60 days of pay (all pages) for all borrowers Two most recent pay stubs, showing at least 30 days of year-to-date earnings for all borrowers If you receive alimony, child support or separation maintenance as qualifying income and wish to have it considered in your ability to repay your mortgage debt, a copy of the divorce decree, separation agreement or other written agreement filed with the court, or decree that stated the amount and period of time the payment will be received and will continue for at least 12 months and evidence of two month s receipt of income from this source (i.e. bank statements) If you receive income from social security, disability, or death benefits, pension, adoption assistance, public assistance, unemployment or if your employment is seasonal, please provide a copy of the benefits statement or letter from the provider that states the amount, frequency, and duration of the benefit If you receive income from social security, disability, or death benefits, pension, adoption assistance, public assistance, unemployment or if your employment is seasonal, please provide evidence of two month s receipt of income from this source (i.e. bank statements) For each borrower receiving unemployment benefits, a copy of the benefits statement showing eligibility of benefit or unemployment benefits received within the last six months, including the amount, frequency and duration of the benefit. If you receive income from a rental property, please provide a complete list of real estate that you own, including the monthly payment for all mortgages, taxes and insurance (if not impounded/escrowed) and any homeowner association dues If you receive income from a rental property, please provide a current rental agreement(s) and evidence of two month s receipt of rental income (i.e. bank statements)
If you receive income from a rental property, please provide federal tax returns for the previous year with all required schedules, including Schedule E (Supplemental Income and Loss); if a Schedule E is not available, because the property was not previously rented, provide written explanation of such For each borrower who is on active military duty or within 9 months of release, please provide a copy of active duty military orders or other proof of active duty status that reflects start date and end date is required For each borrower who is on active military duty or within 9 months of release, please provide a copy of the most recent Leave and Earnings statement that may include flight or hazard pay, rations, clothing allowance, quarters/housing allowance, and proficiency pay is required. If you are not on active military duty, please provide the most recent pay stub that reflects at least 30 days and shows year-to-date earnings for each borrower who is either a salaried employee or hourly wage earner. If you have income from any other source(s) (i.e. bonuses, tips, investments, renter income or any additional household contributions, please provide documentation describing the nature of the income, such as an employment contract or documents tracking tip income, room rental agreement, spouse/parental support If you have income from any other source(s) (i.e. bonuses, tips, investments, renter income or any additional household contributions, please provide evidence of two month s receipt of income from any additional sources of income you would like to be considered (i.e. bank statements) If you have income from any other source(s) (i.e. bonuses, tips, investments, renter income or any additional household contributions, you may disclose any income from a household member who is not on the promissory note (non-borrower), such as a relative, spouse domestic partner or fiancé who occupied the property as a primary residence. Third Party Authorization Form which authorizes your loan servicer to disclose information with identified third parties and to verify the accuracy of financial statement information A copy of your most recent county property tax statement for your primary residence (if not impounded/escrowed) that states the total annual amount due for the current year is required A copy of your most recent homeowners insurance declaration page for your primary residence (if not impounded/escrowed) that states the total annual premium amount for the current year is required If you belong to a Homeowners Association, a copy of your most recent statement or bill from the homeowners/condominium association which includes the dues amount and frequency paid, and the extent of any past due or delinquent payments Once we determine that you are eligible for HAFA, the following additional documents will be required to approve a short sale Signed HAFA Affidavit as a condition of the closing Copy of the signed listing agreement Information about other liens secured by your property (such as a home equity loan)
Non-Owner Occupant Certification, lease agreement or other proof of occupancy, if applicable A copy of the signed purchase offer Evidence that the buyer has funds to purchase the property such as a letter from a lender that the buyer is approved for a mortgage loan We may also request additional documentation if required by a specific investor or mortgage insurance company Imminent Default (Past due less than 60 days) Imminent default means that you are less than 60 days past due on your mortgage, but you have a hardship that will prevent you from making your mortgage payments on time, such as the loss of a job or an increase in medical bills. If you have such a hardship. If applicable, we may request additional financial information, such as a signed copy of the most recently filed federal tax return with all schedules, a copy of the two most recent pay stubs not more than 90 days old with year-to-date earnings (must be legible), and/or a copy of two most recent bank statements for two consecutive months. VALUATIONS Establishing Property Value Depending upon state requirements, we ll order a review of the property value. You may be contacted by a third-party vendor who will conduct the review. Once the property review is complete, we ll notify you and your agent of the suggested list price in the Short Sale Notice. Please note that you ll receive a copy of each valuation report we use to estimate the market value of the property at no additional cost. Disputed Valuations To order a property valuation reconsideration, please have your agent do the following: 1. Prepare three reasonably comparable valuations 2. Upload the valuations to the Short Sale Processing System 3. Message your Short Sale Specialist when they re available for review Please note that the comparable valuations your agent submits must show a variation of at least 20% from our initial valuation for us to reconsider the property value. In limited cases this requirement can be waived. We ll make our decision within 10 business days of the request. Real estate agents can contact us at 1.866.880.1232 to discuss any questions over property valuation. Your agent can also communicate with us via messaging through the Short Sale Processing System. Price Reduction Review During Marketing Period After the Short Sale Notice is issued, your agent will list the property for 120 calendar days, known as the marketing period.
We ll reevaluate the list price every 21 calendar days with you and your agent during the marketing period. Reductions will be reviewed on a case by case basis. PAYMENTS DURING MARKETING PERIOD DEED IN LIEU POLICY / SPECIAL PROGRAMS You aren t required to make a payment during the 120 calendar day marketing period. However, we ll report missed payments to the major credit reporting agencies as required by the Fair Credit Reporting Act. To learn more about credit scores, please visit The Federal Trade Commission website. Deed In Lieu A deed in lieu of foreclosure is another option to avoid foreclosure if you can t afford the payment on your mortgage. With a deed in lieu of foreclosure, you voluntarily transfer ownership of your house and all property secured by the loan to Bank of America to satisfy the total amount due on your mortgage. A deed in lieu of foreclosure must be approved by the owner of your loan as well as any other lien holders, such as your home equity loan or home equity line of credit lender. If you re unable to sell your house in a short sale before the end of the 120 calendar day marketing period, you ll be offered a deed in lieu of foreclosure. AVERAGE TIMELINES Without an Offer Once you receive a letter inviting you to participate in the program, you have a maximum of 30 calendar days to agree to participate either verbally or in writing. When you have agreed to participate, you ll have a minimum of 30 calendar days to return all the required documents needed to review your eligibility for the program. If you re eligible, you ll receive the Short Sale Notice within 30 calendar days of receipt of request for short sale. If you agree to the terms of the program, you ll be asked to actively market the property with a licensed real estate agent for 120 calendar days. When you receive a written offer to purchase the property, you or your real estate agent will be asked to submit the required HAFA documentation within 3 business days. We ll determine whether the proposed sale is consistent with the HAFA Short Sale Notice. Once all documentation is received, we ll respond within 10 business days to let you know if your offer is approved.
We may require that the closing occur in a reasonable period but can t request that it happen in less than 45 calendar days from the date of the executed purchase contract without your consent. A HAFA Affidavit must be signed by all borrowers on your loan (as the seller) as well as all buyers of the property as a condition of the closing of the HAFA short sale. If homeowners don t receive an offer in the 120 calendar day marketing period, they may be eligible for a deed in lieu of foreclosure. With an Offer We ll acknowledge receipt of an executed sales contract within 10 business days. Within 30 calendar days of receipt of the offer documents, we ll determine your eligibility for HAFA and decide if the offer can be accepted, or make a counter-offer in writing. We may require that the closing occur in a reasonable period but can t request that it happen in less than 45 days from the date of the executed purchase contract without your approval. A HAFA Affidavit must be signed by all borrowers on your loan (as the seller) and all buyers of the property as a condition of the closing of the HAFA short sale. CONTACT INFORMATION Bank of America Customer Relation Manager : Short Sale: 1.800.669.6650 Deed In Lieu: 1.800.669.6650 Hours: 8am-10pm EST Mon-Fri HOPE Counselors: If you d like to speak with a counselor about this program, please call the Homeowner s HOPE Hotline at 1-888-995-HOPE (4673). The Homeowner s HOPE Hotline offers free HUD-certified counseling services and is available 24/7 in English and Spanish. Other languages are available by appointment. THIRD PARTY VENDORS In order to complete the short sale process, Bank of America works with third party companies to assist your listing agent with the sale. The vendor and your listing agent will work together on your behalf to help you through the process. One of the following third-party vendors may be helping us with the short sale process: AMS Servicing LLC, Dignified Transition Solutions, Loan Resolution Corporation, REDC Default Solutions, and ServiceLink.