For loans not owned by Fannie Mae or Freddie Mac

Home Affordable Foreclosure Alternatives Policies

HAFA Qualifications
What is a Home Affordable Foreclosure Alternatives short sale? The Home Affordable Foreclosure Alternatives program provides homeowners with a way to settle their mortgage debt without going through foreclosure. If you are unable to qualify for another home loan assistance program, such as a loan modification, or if you no longer wish to keep the house, you can pursue a short sale or deed in lieu of foreclosure instead of going through the foreclosure process. While it will not allow you to keep your property, a short sale or deed in lieu of foreclosure is often an easier process than a foreclosure and may have a less negative impact on your ability to get a loan in the future. This federal government program streamlines the approval process and offers financial assistance to help you with relocation. You may be eligible for a Home Affordable Foreclosure Alternatives (HAFA) short sale if: your loan was originated on or before January 1, 2009 your loan is past due or you believe that you will miss a payment in the foreseeable future (loan can be current) the property has been vacant or rented out for less than 12 months, and you have not bought another principal residence during that time the property is not vacant or condemned the unpaid principal balance on the loan is no greater than the following: 1 Unit: $729,750 2 Units: $934,200 3 Units: $1,129,250 4 Units: $1,403,400 If you are up to date on your loan payments, you can apply for a Home Affordable Foreclosure Alternatives short sale. However, in order for you to be accepted into the program, we will need the approval of the owner of your loan and/or the company insuring your mortgage (you may hear the owner of your loan referred to as your investor.). Requirements around whether you may be past due vary, depending upon the type of loan you have. Bank of America services mortgages for other parties who actually own the loans, and each owner has different requirements. Plus, if you have mortgage insurance on the loan, they will also have different guidelines. Qualification requirements vary. Bank of America services mortgages for other parties who actually own the loans, and each owner has different requirements (you may hear the owner of your loan referred to as your investor.). Also, if your loan has mortgage insurance on the loan, the mortgage insurance company may also have different guidelines.

Who qualifies for a Home Affordable Foreclosure Alternatives short sale?

If I am current on my payments, can I qualify for the Home Affordable Foreclosure Alternatives program?

Do I have to be behind on my payments to qualify for the Home Affordable Foreclosure Alternatives program? Are there additional policy or documentation requirements if I am current on my payments, but I know I may not be able to continue to make my payments in the future?

1 bankofamerica.com/homeloanhelp Bank of America, N.A. Member FDIC. Equal Housing Lender 2011 Bank of America Corporation. All rights reserved.

HAFA Exclusions
Am I eligible if I have a foreclosure sale date? How does the Home Affordable Foreclosure Alternatives program affect foreclosures? Are there any exclusions from the Home Affordable Foreclosure Alternatives program if I owe more on my house than it is worth? Are there any exclusions from the Home Affordable Foreclosure Alternatives program based upon whether I have a home equity loan or home equity line of credit (also known as a subordinate lien or second mortgage)? Are there any other exclusions from the Home Affordable Foreclosure Alternatives program? If your foreclosure sale date is within 60 calendar days, your request for a Home Affordable Foreclosure Alternatives short sale will be reviewed so that we may determine your eligibility. A foreclosure sale cannot proceed while you are under a Short Sale Agreement, Request for Approval of Short Sale, or deed in lieu of foreclosure, as long as you meet all requirements of the program. The Home Affordable Foreclosure Alternatives program will not exclude you from the program if you owe more on your property than what it is currently worth.

The Home Affordable Foreclosure Alternatives program does not restrict you from the program if you have a home equity loan or home equity line of credit. However, to complete a Home Affordable Foreclosure Alternatives short sale, you will be required to have any subordinate liens, such as a home equity, released in order to provide a clear and marketable title prior to closing the sale of the property.

You will not be solicited for a short sale or deed in lieu of foreclosure under the Home Affordable Foreclosure Alternatives program if: you are in bankruptcy; you are in ongoing litigation; or you have requested another short sale or deed in lieu program, for example traditional short sale or deed in lieu program (in a traditional short sale, you put the property on the market and receive an offer before beginning the short sale eligibility and approval process).

Required Documents
What (if any) documents are required for a Home Affordable Foreclosure Alternatives short sale? When you call us to request a Home Affordable Foreclosure Alternatives short sale or deed in lieu, we will provide you with the following required documents that you will need to complete, sign and return to us: a signed Request for Modification Affidavit (RMA), which will serve as proof that you were considered for a MHA loan modification, or a Hardship Affidavit, which explains the reason that you have missed or will miss a mortgage payment a Dodd-Frank Certificate, a form certifying compliance with the Dodd-Frank Wall Street Reform and Consumer Protection Act In addition, you will also need to supply a recent utility bill (gas, electric, water) from the past 12 months as proof that you have been living in the property. Depending on the guidelines of the owner of your loan or mortgage insurer, additional documents may be required. Incomplete documents can lead to disqualification from the program. How will I know if I need to submit additional documents to qualify for the Home Affordable Foreclosure Alternatives program? Once we have reviewed your request for a Home Affordable Foreclosure Alternatives short sale and discussed your current situation, we will notify you if additional documents are needed. The need for additional documents will vary based on the owner of your loan and/or mortgage insurer guidelines.

2 bankofamerica.com/homeloanhelp Bank of America, N.A. Member FDIC. Equal Housing Lender 2011 Bank of America Corporation. All rights reserved.

Response Times
How long do I have to respond to the letter for the Home Affordable Foreclosure Alternatives program? What if I do not respond within the established time frame? Once you receive a Home Affordable Foreclosure Alternatives program letter, you have a maximum of 30 calendar days to respond with your agreement to participate.

If you agree to participate but respond outside the established time frame, we will evaluate your request based on when the foreclosure sale date is scheduled. If you have a purchase contract and a foreclosure sale date is more than 7 calendar days away, you may still qualify. If you do not have a purchase contract and a foreclosure sale date is more than 60 calendar days away, you may also still qualify. You have a maximum of 14 calendar days to sign and return the Short Sale Agreement.

When I receive the Short Sale Agreement, how long do I have to sign and return the document? What if I do not return the Short Sale Agreement within the required 14 calendar days?

If you do not return your signed Short Sale Agreement within 14 calendar days, you will receive a letter declining you from the Home Affordable Foreclosure Alternatives program. However, you may reapply for the Home Affordable Foreclosure Alternatives program, depending on when the foreclosure sale date is scheduled, or you may be eligible for another short sale or deed in lieu program. For more information on other short sale or deed in lieu programs, please contact us at 1.866.880.1232.

Payment Requirements
Am I required to make a mortgage payment during the 120-day marketing period when the house is listed for sale? You are not required to make a payment during the 120-day marketing period.

Incentives
Is there an incentive for customers who agree to complete a Home Affordable Foreclosure Alternatives program short sale? After you successfully complete a Home Affordable Foreclosure Alternatives program short sale, you may be eligible for relocation assistance of up to $3,000 to assist with moving, rental, and other relocation expenses. To help you obtain a clear and marketable title to the property and get any additional lien-holders to release their obligations, we will allow up to $6,000 (total) to be deducted from the proceeds of the sale to help pay the holders of any second liens, such as a home equity loan or home equity line of credit. No, there are no other incentives offered in addition to the incentives mentioned above, except for properties in Florida for a limited time only.

Do you offer incentives above and beyond the Home Affordable Foreclosure Alternatives program incentives? Are there any additional borrower incentives? Are there any real estate agent incentives? Are there any seller incentives?

No, there are no additional borrower incentives with the Home Affordable Alternatives Program.

No, there are no additional real estate agent incentives with the Home Affordable Foreclosure Alternatives program. No, there are no additional seller incentives with the Home Affordable Foreclosure Alternatives program.

3 bankofamerica.com/homeloanhelp Bank of America, N.A. Member FDIC. Equal Housing Lender 2011 Bank of America Corporation. All rights reserved.

Incentives - continued
Under what circumstances could the Home Affordable Foreclosure Alternatives short sale program be terminated? If any of the following occur, you will no longer be eligible to participate in the Home Affordable Foreclosure Alternatives program: your financial situation improves significantly you qualify for a loan modification you are able to bring the loan current and no longer have any payments past due you pay the mortgage in full you or your listing agent fails to abide by the terms and conditions of the short sale or deed in lieu a significant change occurs to the property condition or value there is evidence of fraud or misrepresentation you file for bankruptcy or the Bankruptcy Court declines the Short Sale Agreement or deed in lieu litigation is initiated that threatens the title or otherwise interferes with the transfer of the title to the new owner you fail to make the monthly payment stipulated in the Short Sale Agreement, if applicable

Realtor Communications
How often do you require communication with the real estate agent during the marketing phase? Bank of America communicates frequently with your real estate agent throughout the entire process. During the marketing phase, the agent is contacted every 21 calendar days when the property is listed for sale. If the marketing period is extended beyond 120 days, this still holds true.

Property Valuation
How is property value determined? Depending upon state requirements, we will order an interior appraisal or interior broker price opinion. Real estate agents can contact us at 1.866.880.1232 to discuss any questions over property valuation. Your agent can also communicate via email through Equator, the online short sale processing system.

How do real estate agents escalate property valuation questions or issues?

Short Sale Agreement Extensions/Deed in Lieu

Do you allow a Short Sale Agreement to be extended beyond the 120-day initial marketing period? After the initial 120 calendar day marketing period, it may be extended if all interested parties, including the owner of your loan and/or your mortgage insurer, agree. An extension may be granted every 60 calendar days until the maximum of 12 months is reached. When the maximum 12 months have been reached, then you may be eligible to pursue a deed in lieu of foreclosure or another short sale program. Your real estate agent will need to request an extension and provide rationale as to why extending the period would result in an offer (increased showings, etc.) A new interior appraisal will need to be ordered, and the listing price will need to be evaluated. Please note that you and your real estate agent must be present during the interior appraisal. The owner of your mortgage and/or mortgage insurer, if applicable, will need to approve your request for an extension of the marketing period. Upon approval, a 60 calendar day extension will be granted. When you sign the Short Sale Agreement, you are committing to a deed in lieu of foreclosure if the short sale is unsuccessful. You may need additional documentation and approval from the owner of your loan. A deed in lieu of foreclosure is when you transfer the title or ownership of the property to the owner or servicer of your home loan to satisfy your mortgage debt and avoid foreclosure.

If yes, what is the process for extending the marketing period?

If I am unable to successfully complete a short sale, can I automatically convert to a deed in lieu of foreclosure at the end of the marketing period?

4 bankofamerica.com/homeloanhelp Bank of America, N.A. Member FDIC. Equal Housing Lender 2011 Bank of America Corporation. All rights reserved.

Short Sale Agreement Extensions/Deed in Lieu - continued

When would I be considered for a deed in lieu? All customers who complete the short sale marketing period without selling the property will be offered a Home Affordable Foreclosure Alternatives deed in lieu of foreclosure. Learn more about the potential impact of a deed in lieu of foreclosure on your credit. http://www.ftc.gov/bcp/edu/pubs/consumer/credit/cre24.shtm

Other
How will a Home Affordable Foreclosure Alternatives program short sale affect my credit? A short sale generally takes less time to complete than a foreclosure, so your reported delinquency could be shorter than it would with a foreclosure. As a result, your credit will likely improve faster than it would if your house goes to foreclosure. While we work with you to complete a short sale, we will continue to report the status of your account to the major credit reporting agencies. If a short sale is completed on your property, we will report that your loan was paid in full for less than the full balance. The amount owed on the loan that is not covered by funds from the short sale plus any cash contribution you may make now or agree to make in the future is known as the deficiency. The amount of your deficiency will be reported to the Internal Revenue Service (IRS) on the appropriate 1099 Form(s). We suggest that you contact the IRS or your tax preparer to determine if you have any tax liability.

What are the tax implications of a short sale or deed in lieu?

Deed in Lieu of Foreclosure

What is a Home Affordable Foreclosure Alternatives program deed in lieu of foreclosure? A deed in lieu of foreclosure is designed to help homeowners who are unable to afford their first mortgage payment and want to avoid foreclosure. With a deed in lieu of foreclosure, you voluntarily transfer ownership of your house and all property secured by the loan to Bank of America to satisfy the total amount due on your first mortgage. This is commonly known as handing over the keys. A deed in lieu of foreclosure must be approved by the owner of your loan as well as any other lien holders, such as your home equity loan or home equity line of credit lender. When would I be considered for a Home Affordable Foreclosure Alternatives program deed in lieu? Do I have to go through a short sale before being eligible for a Home Affordable Foreclosure Alternatives program deed in lieu? Is additional documentation required to complete a Home Affordable Foreclosure Alternatives program deed in lieu of foreclosure? Is a real estate agent involved in the deed in lieu process? Are there any incentives for completing a Home Affordable Foreclosure Alternatives program deed in lieu? All customers who complete the short sale marketing period without selling the property will be offered a Home Affordable Foreclosure Alternatives program deed in lieu of foreclosure.

Yes, in most cases. However, there may be situations where the owner of your loan allows you to proceed to a deed in a lieu without first attempting a short sale of the property.

No. However, if your documentation is older than 90 calendar days, you may be required to forward updated information.

No, your property is not listed for sale when you are engaged in a deed in lieu of foreclosure, so a real estate agent is not involved in the process. The only incentives offered are those provided as part of the Home Affordable Foreclosure Alternatives program. You may receive up to $3,000 in relocation assistance. To help you obtain a clear and marketable title to the property and get any additional lien-holders to release their obligations, we will allow up to $6,000 (total) to be deducted from the proceeds of the sale to help pay the holders of any second liens, such as a home equity loan or home equity line of credit.

5 bankofamerica.com/homeloanhelp Bank of America, N.A. Member FDIC. Equal Housing Lender 2011 Bank of America Corporation. All rights reserved.

Deed in Lieu of Foreclosure - continued

How will a deed lieu affect my credit? We will report your existing account to the credit reporting agencies as deed received in lieu of foreclosure on a defaulted mortgage. Learn more about the potential impact of a deed in lieu of foreclosure on your credit. http://www.ftc.gov/bcp/edu/pubs/consumer/credit/cre24.shtm If you have questions or concerns about your deed in lieu of foreclosure, please contact us at 1.877.430.3411.

How do I escalate deed in lieu issues?

Lender Paid Mortgage Insurance

Can the loss mitigation negotiator or short sale specialist tell on their information screen in the servicing system if there is any lender paid mortgage insurance? Yes, our specialists can tell if you have mortgage insurance.

6 bankofamerica.com/homeloanhelp Bank of America, N.A. Member FDIC. Equal Housing Lender 2011 Bank of America Corporation. All rights reserved.