I am pursuing approval for a short sale.

Now we will determine an acceptable price for you to market your house. You may have heard this referred to as the fair market value. A professional appraiser will visit your house, and will consider the sale price of other houses of similar size in your neighborhood to determine an acceptable price for your house. You will not have to pay the cost of the appraisal, since it will be paid from the sale of the house.

After we have evaluated your property, you will receive a Short Sale Agreement document from us that lists an acceptable fair market value of your house. You will need to sign and return this to us within 14 calendar days.

We will also work with all parties necessary to approve your first mortgage Home Affordable Foreclosure Alternatives short sale request. Even if you are pursuing a short sale with us, in most cases, there is a third party that has ownership of the loan. We will need their approval in order to finalize the short sale.

If you have a Bank of America home equity loan or home equity line of credit (also referred to as a second lien), we will take care of getting approvals for your Home Affordable Foreclosure Alternatives short sale request and completing your Second Lien Release form. But, if your home equity loan or line of credit is with another lender, you will have to contact that lender and request a Second Lien Release. The lender needs to provide this form, sign it and send it to you before any offer can be considered.

I am trying to find a buyer.

Under a Home Affordable Foreclosure Alternatives short sale, you are required to work with a licensed real estate professional. We strongly recommend working with a licensed agent who has experience with short sales. They can help guide you through the process, and you will not have to pay the cost of the real estate agent since they will be paid from the sale of the house.

Typically, you will be given 120 calendar days to market and sell your house at the price given in your Short Sale Agreement. During this time, it is important to work with your agent and show your house to as many buyers as possible. We recommend keeping your house in clean condition and making it available for showings to potential buyers. To make sure your short sale is completed successfully, your agent must submit any requested documents on time. It is also important that your agent responds quickly to any counteroffers you receive. If your home equity loan or home equity line of credit is with another lender, you must contact the lender and request a Second Lien Release.

Please note that you cannot sell the house to a family member or anyone else you have a personal connection with. This is known as an arms-length market transaction.

If your house is unable to be shown or sold because of an unexpected circumstance like damage from a tornado or flood, please contact us immediately.

I have received an offer on my house.

Once you receive an offer, your real estate agent will have 3 calendar days to submit the offer letter (signed by the buyer) as well as a Request for Approval of a Short Sale, which will be attached to the Short Sale Agreement we provide you. If you have a home equity loan or home equity line of credit (also referred to as a second lien) on your house with another lender, contact them and request a Second Lien Release form. They need to provide this form, sign it to indicate that they approve of the offer, and send it to you before any offer can be considered. We will get back to you within ten business days with a decision on the offer you received.

The offer on my house was accepted.

Once we accept the offer, we will provide you with an approval letter releasing the house for purchase. With everything in order, final documents will be prepared for closing. You will receive a letter outlining the details of the sale of your house and a set of the documents that must be signed, notarized and returned to us before your Home Affordable Foreclosure Alternatives short sale can be completed.

As with the sale of any house, unless otherwise negotiated, you will need to move out by the closing date, which will be within 45 calendar days of the approval letter date. At the closing, you will receive $3,000 to help you with your moving, rental and other relocation expenses. The sale of your house is now finalized and your mortgage and any other loans against the house are settled from the proceeds of the sale. Under the Home Affordable Foreclosure Alternatives program, you are fully relieved of any obligation to repay the mortgage.

For tax purposes, the $3,000 you receive for relocation and any additional amount owed on the loan that is not covered by funds from the short sale (the deficiency) are considered income. Please consult a tax advisor for more information on how this could affect you.