Bank Short sale incentives
Bank of America is testing Florida's foreclosure waters with an incentive program for defaulting homeowners to "short sell" their homes instead of enduring a foreclosure, which can take years. Guidelines for Bank of America's new Florida Enhanced Short Sale Relocation Assistance program state that a borrower may use the incentive to pay off existing liens or for relocation expenses.FHA, Ginnie Mae, VA and USDA loans are not eligible. Details are available by calling 1-866-880-1232.
Short-sale incentives are an outgrowth of earlier, "cash for keys" programs offered by lenders and real-estate companies.
Also, the US Treasury Department has tried to boost the number of short sales with its Home Affordable Foreclosure Alternatives program, which provides $3,000 for borrower-relocation assistance, $1,500 for servicers to cover administrative and processing costs, and as much as $2,000 for investors who meet certain requirements.
More info on the Bank of America short sale incentive program
Other programs currently available:
- Wells Fargo offers incentives of $10,000 to $20,000 to certain homeowners who opt for a short sale or who transfer a home's title back to the bank. The program is aimed at properties in Florida and other states known for protracted, judicial foreclosures. The money is available only on first-lien loans that the company owns, which is about 20% of its portfolio.
- JPMorgan Chase has not reported how much it offers for short-sale incentives, though real-estate agents have reported sellers getting $20,000. The lender also has declined to specify how it determines the amount of its incentives. Details for the Chase Seller Outreach Program:
- Citibank has reported it offers an average of $12,000 for borrowers when it owns the mortgage. The amount is determined upfront and varies depending on a borrower's financial circumstances and mortgage-payment history. The money is disbursed when the short sale closes.
Courtesy of the Loss Mitigation Institute LLC