Title insurance companies are reporting an apparent short sale scam.
The scam artists are allegedly issuing Bank of America short sale approval letters that appear to be authentic letters written and issued by Bank of America but are not actually issued by Bank of America.
Bank of America is offering payments of up to $30,000 to some homeowners, if they sell their homes in a short sale and avoid foreclosure. The exact amount of these “relocation” payments will be calculated on a case by case basis and range from $2,500 to $30,000.
In short sales, the sale price of the home is less than what the seller owes the bank.
During the final three months of 2011, foreclosures sold for an average of approximately $150,000, according to RealtyTrac, while short sales sold for an average of about $185,000.
To qualify for Bank of America’s short sale “relocation” payments, borrowers must receive pre-approval of the sale prices for their homes and the sale must begin by the end of 2012 and close by September 26, 2013.
Borrowers may call 877-459-2852 to inquire about their eligibility.
Bank of America announced it is mailing out letters to customers who may qualify for principal reductions on their real estate loan as part of a multi-state settlement over alleged foreclosure abuses.
Bank of America estimates that more than 200,000 customers may receive a reduction.
Even if you don’t receive one of these letters but had a real estate loan with Bank of America, I recommend contacting them to see if there’s anything that can be done to ease your situation.
Do you have a real estate loan with Bank of America? Have you received a letter from them about this? Please share in the comments below.