Will My Bank Pay Me Cash to Do A Short Sale? Short Sale Seller Relocation Incentive Information
The short answer is maybe. Most of the major lenders do offer seller relocation incentives on at least some of their short sale files. What does this mean? Upon successfully closing the short sale the seller will be given a cash incentive to relocate. Whether or not you are eligible for an incentive will depend both on who your lender is and who the investor on your loan is.
Most of the major banks (Bank of America, CHASE, Wells Fargo) are participating in the HAFA program (Home Affordable Foreclosure Alternatives) which is the short sale and deed in lieu companion to the HAMP program (government loan modification program) . The HAFA program allows a $3000 seller relocation incentive that cannot be touched by the lender, they must pay this to the homeowner. There are other reasons to participate in the HAFA program but the seller incentive comes in handy to those sellers who are so cash strapped that gathering a first and last month’s rent for a rental is a challenge.
In addition, the Department of Veterans Affairs now allows a $1500 seller relocation incentive on VA short sales, also known as VA compromise sales. Bank of America’s cooperative short sale program allows a minimum of $2500 – $30,000 seller incentive and recently many of these files have also been eligible for funds from the foreclosure settlement. Chase Bank has mailed out letters to many borrowers who are underwater and/or behind in their mortgage offering incentives between $2500 – $20,000. Wells Fargo will typically pay an incentive of $2500 on files that originated as Wachovia files.
Before deciding whether to short sell your home, it is essential that you obtain legal and tax advice, and consult with an experienced local short sale agent. If you are considering a short sale of your Santa Maria, Orcutt, or Central Coast home and would like a short sale consultation, please call my office to schedule a meeting or a telephone consultation at (805) 938-9950.
Tni LeBlanc is an independent Real Estate Broker, Attorney, and Short Sale Agent. She is a Certified Distressed Property Expert (CDPE), Short Sale and Foreclosure Resource (SFR) and Certified HAFA Specialist (CHS) serving the Santa Maria, Orcutt and Five Cities area of the Central Coast of California.
* Nothing in this article is intended to solicit listings currently under contract with another broker. This article offers no legal or tax advice. Those considering a short sale are advised to consult with their own attorney for legal advice, and their tax professional for tax advice prior to entering into a short sale listing agreement.
Copyright© 2012 Tni LeBlanc *Will My Bank Pay Me Cash to Do A Short Sale? Short Sale Seller Relocation Incentive Information*
