Bank of America is now paying up to $30,000 in relocation assistance for homeowners who are looking to short sale their homes. This is an offer that could not come at a better time as Sacramento homeowners are scrambling to complete short sales between now and the end of the year when the forgiven debt exemption expires (see my column: Time is Running Out on Short Sale Tax Break).
To qualify for the relocation assistance payment, the seller and their Realtor must work proactively with the bank to obtain a preapproved sales price prior to submitting a purchase offer to the bank. A short sale must be initiated by the end of this year and close by September 26, 2013, to be eligible for the payment. Qualifying short sales that have already been started but have not closed may be eligible for the relocation assistance.
The amount of assistance provided under the new program will be determined on a case-by-case basis using a calculation that includes the value of the home, amount owed and other considerations.
Initially, the program will be offered on mortgages that are owned and serviced by Bank of America and includes non-owner occupied properties.