Posted By Michael Valdes @ Oct 12th 2011 3:07pm In: Short Sales

Bank Short sale incentives

 Short Sale Incentive

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.
Details: 1-800-678-7986.

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:
Details: 407-248-3945.

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.
Details: 1-866-272-4749.


Courtesy of the Loss Mitigation Institute LLC

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