Make us your home page
Instagram

Bank of America extends deadline for plan to aid distressed homeowners

Bank of America has extended the signup deadline for a program that pays up to $20,000 to distressed Florida homeowners who agree to sell their houses in a short sale.

The original deadline expired Wednesday, but the bank extended the application period to Dec. 12 so more homeowners could enroll. The program pays between $5,000 and $20,000 to homeowners who agree to a short sale instead of going into foreclosure.

Bank of America notified about 20,000 homeowners that they might be eligible for the program, and about 15 percent have verbally indicated they want to participate, said spokesman Rick Simon. "The bank has been pleased with the response to the … program," Simon said.

Bank of America announced the program in early October. To sweeten the deal further, the nation's largest lender said it would consider waiving the deficiency on the loan, which allows homeowners to sell the house for less then they owe without having to make up the difference to the bank. It can save homeowners thousands of dollars.

The deals must close by Aug. 31. The bank services 1.1 million Florida mortgages.

Short sale specialist Steve Capen of Keller Williams Realty in St. Petersburg has gained 15 listings from the program. Communication mistakes with vendors handling the paperwork for the bank have caused processing delays, he said, adding: "It's been a mess."

For homeowners who want to walk away from underwater loans with cash in their pockets, "This is good that Bank of America is trying to get the word out more," Capen said.

Not every Florida customer is eligible for the program. Bank of America targeted homeowners who cannot afford their mortgages. The bank rolled out the "test-and-learn" program only in Florida because of the higher foreclosure rates here than elsewhere. If successful, the plan could expand to other states.

Mark Puente can be reached at mpuente@tampabay.com or (727) 893-8459. Follow him at Twitter at twitter.com/markpuente.

Bank of America extends deadline for plan to aid distressed homeowners 12/01/11 [Last modified: Thursday, December 1, 2011 8:46pm]
Photo reprints | Article reprints

© 2017 Tampa Bay Times

    

Join the discussion: Click to view comments, add yours

Loading...
  1. Amazon expands in Tampa with Pop-Up shop in International Plaza

    Retail

    TAMPA — A new retailer known largely for its online presence has popped up at International Plaza and Bay Street.

    Shoppers walk past the new Amazon kiosk Tuesday at the International Plaza in Tampa. The kiosk, which opened last month, offers shoppers an opportunity to touch and play with some of the products that Amazon offers.
[CHRIS URSO   |   Times]

  2. Study: Florida has fourth-most competitive tax code

    Banking

    Florida's tax code is the fourth most competitive in the country, according to a study released Tuesday by nonprofit group Tax Foundation.

    Florida has the fourth-most competitive tax code, a study by the Tax Foundation said. Pictured is  Riley Holmes, III, H&R Block tax specialist, helping a client with their tax return in April. | [SCOTT KEELER, Times]
  3. Trigaux: On new Forbes 400 list of U.S. billionaires, 35 now call Florida their home

    Personal Finance

    The latest Forbes 400 richest people in America was unveiled Tuesday, with 35 billionaires on that list calling Florida home. That's actually down from 40 Florida billionaires listed last year when a full 10 percent listed declared they were Floridians by residence.

    Edward DeBartolo, Jr., shopping center developer and  former San Francisco 49ers Owner, posed with his bronze bust last year during the NFL Hall of Fame Enshrinement Ceremony in Canton, Ohio. DeBartolo remains the wealthiest person in Tampa Bay according to the Forbes 400 list released Tuesday. 
[Photo by Joe Robbins/Getty Images]
  4. Clearwater attorney accused of condo foreclosure trickery fights back

    Real Estate

    The Clearwater lawyer accused of tricking a bidder into paying $458,100 for a gulf-front condo now plans to contest a judge's order tossing out the sale.

    John Houde, left, looks in the direction of Clearwater lawyer and real estate investor Roy C. Skelton, foreground, in August during a hearing Sixth Judicial Circuit court Judge Jack St. Arnold at the Pinellas County Courthouse. The judge agreed with Houde's allegation that he was duped by Skelton in thinking he bought a Redington Beach condo for $458,100 out of a foreclosure auction. Now Skelton is fighting back. 
[DOUGLAS R. CLIFFORD   |   Times]
  5. How a group of Florida tomato growers could help derail NAFTA

    Agriculture

    Tony DiMare, a third-generation Florida tomato grower, has spent two decades contending with cheap Mexican imports, watching his neighbors abandon crops in their fields and sell off their farms when they couldn't match the price of incoming produce.

    Workers fill a trailer with tomatoes as they harvest them in the fields of DiMare Farms in Florida City. [Joe Raedle | Getty Images(2013)]