The 6 Most Common Short Sale Incentive Programs Available Today

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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.

(photo credit)

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About Author

Melissa Zavala is the Broker/Owner of Broadpoint Properties and Head Honcho of Short Sale Expeditor®. Before landing real estate, she had careers in education and publishing. Many folks say that Melissa is genetically pre-disposed to success with short sales. In fact, last year she and her staff obtained over 500 short sale approval letters! When she isn’t speaking with lien holders, Melissa enjoys practicing yoga, walking the dog, and vacationing at beach resorts.

4 Comments

  1. I just took a listing for a short sale – the lender is Chase. As of this week, the sellers have not received a letter offering them an incentive. What is the best way to approach Chase to request relocation expenses?

  2. There are a ton of variables that come into play that can affect the outcome of your short sale. The best advice I can give any homeowner is to do your research and take the time to find a well educated agent, securing a knowledgeable agent will help a lot. Many agents now days are working with third party companies to assists with the processing of their short sales, simply due to the fact that they’re time consuming and they’re able to assist more homeowners this way.

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