Developer · Andover, MA · Member since 2008 · 1k+ posts · 489 votes
I just got a call back from my direct mailing from a woman who is looking to sell her property so she can move to Florida. She owes about $150k and has missed a couple mortgage payments since last year. I estimate I would have to pick up the property around $120k to make the deal work. She would be open to a short sale, however, she really needs cash in her pocket to move. Is it possible/legal to buy a property through a short sale and put money in her pocket too?
A follow investor told me that lenders sometimes offer relocation expenses when a seller goes through a short sale. Has anyone heard of this?
Wow, things have changed. I know 2 years ago when I was doing mine that was strictly prohibited. Basically the bank is funding her move. I guess they got so used to cash for keys that this was the next logical step?
I just found this blog that talks about a $5k relocation fee paid by Wachovia. This also happens to be the bank the seller has her mortgage with. http://wachoviashortsaleexpert.net/17/wachovia-short-sale-free-brochure/
There is a link at the beginning of the second paragraph that brings you to an approval letter from Wachovia illustrating the $5k relocation fee.
The seller is asking for $40k in her pocket.....hopefully she can settle for $5k??
I just closed on a short sale in Florida where the seller received $20k from BOA. The extra funds need to come from the lender directly or it's not an arms length transaction I assume.