Bank of America "Florida Enhanced Short Sale Relocation Assistance

It appears that Bank of America is finally realizing that a short sale is a viable option for avoiding foreclosure. For a very limited time they are offering "enhanced' relocation assistance to help motivate homeowners to engage in a "pre-offer short sale".

An additional benefit to this program is the deficiency may be waived for the homeowner. It is not entirely clear that it will be waived as the letter is a little ambiguous. While paragraph one states it may be waived, the small print in the final paragraph states, "Even if the homeowner receives relocation assistance, Bank of America, N.A., and their successors and assigns may reserve and retain the right to pursue collection of any deficiency following the completion of the short sale, ..."

The eligibility criteria is as follows:
• Homeowners with property in Florida.
• Short sales initiated without an offer between Sept 26 and Nov. 30, 2011.
• The customer will have to be eligible for one of the without offer programs such as the HAFA program or Bank America's proprietary program (specific investor participation and eligibility criteria do apply to these programs).
• Successful closing of the eligible short sale by Aug. 31, 2012.
• Minimum relocation assistance is $5,000 and maximum is $20,000, with the specific amount calculated based on the unpaid principal balance. (I was told, informally, that is based on 5% of the unpaid principle balance).
The following exclusions apply:
 Ginnie Mae, FHA, VA and USDA loans are ineligible for participation.
 Lot loans are not eligible.
 Properties outside the state of Florida are not eligible.
 Short sales initiated with an offer are not eligible for the enhanced relocation assistance