That’s a lot of cash. For one of my clients who sold his house as a short sale in Maryland last month, that’s exactly how much Chase Mortgage gave him. Why don’t more people know this is possible? Odds are good that their Realtor isn’t even aware!
A few short years ago getting any proceeds from a short sale was harder than winning an Olympic gold medal, but then the government released the Home Affordable Foreclosure Alternatives (HAFA) program, and suddenly homeowners were seeing up to $6,000 in proceeds from their lender in exchange for successfully completing a short sale.
Why HAFA Isn’t As Cool Anymore
There were a few problems with the program, however. The guidelines were limiting, the banks never help up their end of the agreement, and sellers were left frustrated. The problems weren’t a complete surprise; frustrated home owners at risk of foreclosure are already used to the bureaucracy involved in government sponsored loan mod programs, why should a government sponsored short sale program be any different?
Banks Are Giving Home Owners Big Bucks to do a Short Sale
All of that is starting to change. Banks finally started looking at the cost of actually foreclosing on people (especially here in Maryland, where the process averages 3 years!) and they realized that the lost a lot less money by doing a short sale! Thanks to a number of factors, banks have started paying people to short sale their home!
Lenders are cutting some pretty big checks, too. Instead of a $6,000 maximum, we are closing deals for sellers with banks contributing up to $35,000 in relocation assistance in exchange for the short sale! Not only that, but they are guaranteeing to waive any deficiency on the seller!
People that are underwater and struggling with their mortgage payments have been quietly handed a golden opportunity to cut their debt and start over. The lenders have even sent out letter encouraging people to consider the offer, but many are ignoring it completely, assuming that the latest letter from the bank is just more bad news.
Short Sales Make A Lot Of Sense
Short sales are about more than just facing a financial hardship with your home. It’s a chance to erase debt, buy again in 2 years, and put your massively underwater mortgage behind you. All that being said, it’s a lot easier to work towards that goal when your bank is paying you to do it!
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