Short sale incentive programs have been big news these last few weeks. While the programs themselves are not new, the fact that they have been a featured topic on many news media sites has brought a renewed interest in these programs. So, I thought it would be a good idea to share some information on the most common short sale incentive programs available:
Options available for short sale sellers:
HAFA: In this program, qualified households who participate in this program (which has both short sale and deed-in-lieu of foreclosure options) receive $3000 at closing. (Fannie Mae and Freddie Mac also participate in HAFA.)
Bank of America Cooperative Program: In this program, qualified households that participate in this short sale program will receive $2500 at closing.
TAP: In this program, qualified California households that participate in a short sale or deed-in-lieu of foreclosure will receive up to $5000 at closing.
Wachovia: Wachovia Bank frequently sends borrowers letters asking them to participate in a short sale and offering an incentive in the letter. 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).
Litton: Litton Loan Servicing frequently sends borrowers letters asking them to participate in a short sale and offering an incentive in the letter. 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).
Chase Bank (and Citi and SPS): Chase Bank is now sending certain borrowers letters offering them the option of participating in a short sale for a significant incentive (often between $20,000 and $40,000 dollars). Read the fine print on the offer and follow all of the rules in order to receive this incentive at closing.
While these are by no means all of the incentives available, they are definitely the most common ones. And, with all of these options on the table, it’s more likely then ever that sellers may select short sale over foreclosure. So, now might be as good a time as any to consider short sales as a viable component of your plan for 2012.