The nation’s leading mortgage lenders are extending extras for short sale transactions employed as an alternative to foreclosure – both in the form of monetary incentives for borrowers and streamlined procedures for real estate agents.
There are all kinds of incentives available to short sale sellers throughout the United States. Those incentives range from a few thousand dollars all the way up to $35,000 (enough to pay for some of your kid’s college education).
The average incentive offered by Citi has been confirmed at $12,000 – provided that Citi owns the loan.
Bank of America has reportedly implemented procedural revisions designed to minimize ‘red tape’—saving time for agents who are attempting to complete short sales. They launched the Bank America Cooperative Program that pararell HAFA program and qualified households receive $ 2,500 at closing.
According to DSNews.com, JPMorgan Chase is offering a range of incentives to borrowers who agree to a pre-foreclosure sale “because if we can’t work out a modification, a short sale is a better result for the borrower, the servicer, the investor, and the neighborhood than a foreclosure.” In all cases, lenders indicate that incentive decisions are made on a case-by-case basis, depending upon a variety of circumstances. Many agents claim that their clients received $ 20,000 for concluding the short sale with Chase.
According to a DSNews.com account, Wells Fargo stated that relocation offers can be as much as $10,000 or $20,000
Others banks such as Wachovia and Litton send letters to borrowers facing foreclosures offering incentives. Sellers should read their mail and save the letter so that they can redeem the incentive at closing (usually between three and five thousand dollars).
One caveat is that the incentives offered may only apply on loans where the lender is 1st lien holder and the practice seems to more widespread in states where the foreclosure process is known to be lengthy and complex.
Before you accept the financial incentives, you need to consult with your tax advisor for any tax consequences.
For more information, please contact me at crownrealtor@gmail.com or (213) 820-7509.
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