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. 'Road to Nowhere' is back: Next phase of Suncoast Parkway coming

    Roads

    Despite intense public opposition and dubious traffic projections, the Florida Department of Transportation has announced that construction of the toll road known as "Suncoast 2" is expected to start in early 2018.

    The Suncoast Parkway ends at U.S. 98 just south of Citrus County. For years residents have opposed extending the toll road, a project dubbed the "Suncoast 2" into Citrus County. But state officials recently announced that the Suncoast 2 should start construction in early 2018. [Stephen J. Coddington  |  TIMES]
  2. A sports rout on Wall Street

    Retail

    NEW YORK — Sporting goods retailers can't shake their losing streak.

  3. Grocery chain Aldi hosting hiring event in Brandon Aug. 24

    Retail

    BRANDON — German grocery chain Aldi is holding a hiring event for its Brandon store Aug. 24. It is looking to fill store associate, shift manager and manager trainee positions.

  4. Lightning owner Jeff Vinik backs film company pursuing global blockbusters

    Corporate

    TAMPA — Jeff Vinik's latest investment might be coming to a theater near you.

    Jeff Vinik, Tampa Bay Lightning owner, invested in a new movie company looking to appeal to a global audience. | [Times file photo]
  5. Trigaux: Look to new Inc. 5000 rankings for Tampa Bay's future heavyweights

    Business

    There's a whole lotta fast-growing private companies here in Tampa Bay. Odds are good you have not heard of most of them.

    Yet.

    Kyle Taylor, CEO and founder of The Penny Hoarder, fills a glass for his employees this past Wednesday as the young St. Petersburg personal advice business celebrates its landing at No. 25 on the 2017 Inc. 5000 list of the fastest growing private companies in the country. Taylor, still in his 20s, wins kudos from executive editor Alexis Grant for keeping the firm's culture innovative. The business ranked No. 32 last year. [DIRK SHADD   |   Times]