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Short Sales in CT > Blog > Bank of America Cooperative Short Sale Program Overview
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Bank of America Cooperative Short Sale Program Overview

August 26, 2012

You may be eligible for the Cooperative Short Sale program if:

- your loan is secured by a participating investor (a third party that has ownership of the loan)

- you are not eligible for or were declined for the federal government’s Home Affordable Foreclosure Alternatives program

- you owe more on your house than it is worth

- you are experiencing a hardship (such as a job loss, divorce or medical emergency) and are no longer able to make payments on your home loan


  Bank of America has designed their own system to processing Short Sales called the Cooperative Short Sale Program. Also known as the CoOp Short Sale Program.  The CoOp program is almost identical to the HAFA Short Sale program in that the short sale can be initiated immediately allowing for an immediate BPO Valuation to be ordered so that the end investor can pre-approve the purchase price.  This can shave several weeks off the short sale time-line compared to the Traditional Short Sale (non HAFA or CoOp), requires an offer to be submitted with the short sale package before the file will be opened and reviewed.  The CoOp program is typically the next option after being denied for the HAFA program.

  The other benefits of the CoOperative program include the guaranteed waiver of deficiency (difference) and a $2,500-$3,000 check granted to the seller at closing for moving expenses and their participation in the program.  Additionally, the foreclosure process will be temporarily halted upon acceptance into the program.

 After initiation of the Bank of America CoOp program, the BPO valuation is immediately ordered, and the financials can immediately be uploaded for review.  This allows Bank of America to get the investor's approval of acceptance on a value prior/during the home marketing process.  Once an offer is produced, it should then only take 10-14 days for full short sale approval.  This is far better than traditional short sale that would not even open the file with bank of america until an offer was submitted.  From their the BPO Valuation, Financials Review and Investor Approval could take 1-3 weeks each. During that time the buyer would be waiting .. and waiting .. and waiting.  Often times the buyer would get so tired of waiting and not knowing if anything would come out of it, that they would walk away from the deal.  The property then had to be re-listed and the short sale started from scratch after a new offer was produced.

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