Bank of America’s payoff to Florida homeowners draws 678 short sales
Thousands more homeowners pursue incentives of up to $20,000.
Bank of America’s payoff to Florida homeowners who do a short sale instead of dragging out a foreclosure has averaged $12,000 per deal and helped close 678 contracts statewide since it debuted in October.
The Florida-only plan originally targeted 20,000 homeowners with incentives of between $5,000 and $20,000 to forgo the more than two-year foreclosure process and leave their home in “broom swept” condition for a new owner.
Bank of America spokesman Rick Simon said the Charlotte, N.C.-based company remains “enthused” about the pilot program, which generated 3,900 purchase offers and 11,000 verbal agreements from customers who said they were interested in participating.
How to Repair Short Sale Credit
Ensure that your home was indeed sold short, and not foreclosed upon. The difference is that foreclosure assumes that you lost control of the house and surrendered the property to the lender, and short selling assumes the lender took a dollar amount less than the outstanding balance of the loan. Foreclosure will prevent you from buying another home for at least five years, but it can be cut shorter if you truly sold the home short. Contact your lender to obtain this clarification for your loan.
Begin keeping a record of print-outs of your credit report to monitor your accounts. Take note of your credit score and begin to monitor it over the next few months. A short sale should reduce a FICO score by between 200-300 points. Look for other areas of negativity on your report. For example, look for delinquencies on other accounts, charge-offs, and over-limit accounts.