Short Sale with Money back to Seller?

Question

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?

A follow investor told me that lenders sometimes offer relocation expenses when a seller goes through a short sale.  Has anyone heard of this?

Justin Silverio · Answer

What was the reasoning for the $20k payment?

Account Closed · Answer

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.

Andrew Jones · Answer

40k!  Why would she be asking for 40!?  So the seller falls behind on her commitment to pay and then wants to be paid 40k. Amazing.

Justin Silverio · Answer

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??

Nathan Emmert · Answer

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?

Ibrahim Hughes · Answer

Yes I understand that many lenders are offering this.