Bank of America HAFA In 2015

home affordable foreclosure alternativesAll of those servicers that have signed agreements with U.S. Department of the Treasury to participate in the Home Affordable Modification program (HAMP) they must consider those eligible borrowers who do not qualify for HAMP or other foreclosure prevention options including the Home Affordable Foreclosure Alternatives program which includes short sale and deed in lieu. However, each of the servicer has some option in determining additional eligibility criteria and certain program rules. In order to facilitate the borrowers and their representatives in understanding any unique components of a HAFA policy of servicer, Treasury has developed a model. The summary information included in this model is simply prepared by the Bank of America and does not represent any judgment by the Treasury as to the servicer’s compliance with the policies of Treasury and guidance for HAFA. Treasury does not support any language or policy that is described in the model.

Eligibility requirements: –

HAFA basic eligibility: –

You can be eligible for a Home Affordable Foreclosure Alternatives (HAFA) short sale if:

  • Your first mortgage was originated on or before January 1, 2009
  • Your first mortgage is past due or you believe that you will miss a payment in the foreseeable future
  • The property is not inculpated
  • You have not been declared within the last 10 years of, theft, fraud, money laundering or tax evasion, in connection with a mortgage or real estate transaction
  • The unpaid principal balance on the loan is no greater than the following:
    • 1Unit: $729,750
    • 2Units: $934,200
    • 3 Units: $1,129,250
    • 4Units: $1,403,400
  • Your first mortgage is not made to or secured by properties owned by a corporation, partnership, Limited Liability Company or other business entities

With the requirements of basic eligibility we will also need the approval of the owner of your loan or the company insuring your mortgage. 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 there are also different guidelines for them.  

Loans in foreclosure: –

  • Without a purchase offer, must be received greater than or equal to 60 calendar days from the foreclosure sale date
  • With a purchase offer, must be received greater than or equal to 7 calendar days from the foreclosure sale date

Program Expiration Date: –

You must submit either:

  • A fully executed HAFA Short Sale Agreement (SSA) or Deed in Lieu (DIL) Agreement
  • A written request for consideration for a SSA or DIL Agreement or Alternative Request for Approval of Short Sale (Alternative RASS) on or before December 31, 2013 and the transaction closing date must be on or before September 30, 2014

Documentation requirements: –

Without Offer – HAFA Short Sale Agreement (SSA)

  • Signed Request for Mortgage Assistance form
  • Utility bill (gas, electric, water), if requested
  • Executed Request for Approval of Short Sale (RASS) form
  • Information about other liens secured by your home (such as a home equity loan)
  • We may also request additional documentation if required by a specific investor or mortgage insurance company

With Offer – Submitted Using an Alternative Request for Approval of Short Sale (ARASS)

  • Signed Request for Mortgage Assistance form
  • Utility bill (gas, electric, water), if requested
  • Executed Alternative Request for Approval of Short Sale (ARASS) form
  • 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
  • Copy of the signed listing agreement
  • Information about other liens secured by your property (such as a home equity loan)
  • We may also request additional documentation if required by a specific investor or mortgage insurance company

Valuations: –

Establishing Property Value: –

Depending upon state requirements, we will order a property valuation. You may be contacted by a third-party vendor who will conduct the valuation. Once the property valuation is complete, then we will notify you and your agent of the suggested list price in the Short Sale Agreement.

Disputed Valuations

To order valuation reconsideration, please have your agent do the following:

  1. Prepare three reasonably comparable valuations
  2. Upload the valuations to Equator
  3. Message your Short Sale Specialist when they are available for review

Payment during marketing period

You are not required to make a payment during the 120-day marketing period.

Relocation Assistance: –

After the successful closing of the short sale, you, a tenant or other non borrower occupant  may be entitled to relocation assistance of $3,000 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 that all other payments, including the payoff of our first mortgage, are disbursed by the closing agent.

A maximum of $3,000 per household is provided for the relocation assistance, regardless of the number of borrowers or tenants. The relocation assistance payment may not be used for the release of subordinate mortgage or nonmortgage liens recorded against the property.