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Short Sales in CT > Blog > Bank of America: Cooperative Short Sale Program (Coop) Overview
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Bank of America: Cooperative Short Sale Program (Coop) Overview

August 27, 2012

  • BOA Cooperative Short Sale Program
The BOA Cooperative Short Sale Program can help a homeowner avoid foreclosure who does not qualify for the Home Affordable Foreclosure Alternatives (HAFA) Short Sale Program. This program, like the HAFA program, offers $2,500-30,000 in relocation assistance, waives the deficiency and streamlines the short sale approval process.
The homeowner is to agree that they are responsible for the maintenance and expenses on the property until closing. As with all short sales, the cooperative short sale must be an “arm’s length transaction”, meaning that the homeowner doesn’t sell their home to a friend or relative.
The additional benefits include:
  • If for some reason, the cooperative program fails, the bank may offer the homeowner the option to participate in a deed-in-lieu of a foreclosure.
  • Once the short sale is completed, the bank then notifies the credit agencies that the loan was completed as a short sale.
  • If the cooperative loan is successful, the bank may give the seller an additional $2,500.

Do you qualify for the cooperative program?
  • Homeowner experiences a financial hardship and not able to afford the mortgage payments.
  • A homeowner who doesn’t qualify for the HAFA program or any other loan modification programs.

The BOA Cooperative Short Sale Program Process:
  • STEP 1 - INITIATION:The Short Sale should be initiated through the Equator.com platform. This task is typically performed by the real estate agent you have selected to work with to sell your home. BOA will request the loan #, property address, the borrowers contact and some basic information about the circomstances.

    If you are eligable for the HAFA Short Sale Program you will be required to call BOA to confirm participation in the program. However if the investor is not participating your loan in HAFA, they may be participating in the Coop program. If so, you will be approved to participate in the BOA Cooperative Short Sale program and an acceptance letter will need to be signed by the borrower to confirm participation.

    Note: Your real estate agent can begin marketing the property immediately and even secure an offer prior to initiation .. or you can wait until after the short sale valuation is completed in order to find out what value the lender will accept).
  • STEP 2 - VALUATION: A property valuation (also referred to as a Broker Price Opinion, BPO or Appraisal) will be immediately ordered to assist in the pricing the the home and for consideration of the final short sale offer approval.
  • STEP 3 - HARDSHIP DOCS: Your financial documents will also immediately be requested and should be uploaded to Equator.com. This includes a hardship letter, 2 months bank statements, 1 months pay stubs and 2 years of tax returns.
  • STEP 4 - FOR SALE: Once a list price has been established your real estate agent can should list the home based on the BPO valuation recommendation and market the property to find a buyer. Note: The property can be listed and under deposit prior to the BPO valuation.
  • STEP 5 - OFFER: Once an offer is received, it should be submitted to the short sale department along with any additional required Cooperative documents, lender forms or updated documentation. (Your real estate agent will be able to do this for you.)
  • STEP 6 - APPROVAL: If the BPO/Appraisal is in line with the property valuation (within reason), than the offer may be approved. However if the offer is deemed too low based on todays market value, BOA may present a counter offer to be verbally proposed to the buyers. The buyer can accept the counter, stick with their original offer, or submit a new offer to the seller.
  • STEP 7 - CLOSING: Once a final approval letter has been provided to your agent, the closing for transfer of ownership can be scheduled. If you are eligable for relocation assistance it will be provided to you in the form of a check at closing.

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