As weird as it sounds, banks and loan-servicers are increasing their incentives to home owners in lieu of a successful short sale!
Last year, the U.S. Treasury Department launched the Home Affordable Foreclosure Alternative Program otherwise known as HAFA. Here’s a quick VIDEO overview of it. Part of this program provides the borrower with a $3,000 cash incentive.
$3,000 is ok, but it’s peanuts compared to what some lenders are providing now, independent of HAFA altogether.
For example, CitiMortgage is now paying on average, $12,000 to borrowers/homeowners after completing a short sale. JP Morgan / Chase bank is also offering significant incentives to borrowers to the tune of $20-$30,000 after a successful close! Wells Fargo is offering a similar program in some cases.
One of the keys to a successful short sale, just like modifications, is the timely collection of financial documents. Regulators helped move the process along with guideline changes to programs like the HAFA initiative, which lessened the amount of documents required.
Anyone half-way familiar with the Short Sale process will lament about the long waiting period for approval. Well, Wachovia/Wells Fargo have taken this bull by the horns and offer an extremely streamlined approval program. If your loan is one of their portfolio loans (meaning that they own your loan and didn’t sell or transfer it to another investor); they can approve the whole package in less than 10 days. PLUS, they don’t even care what your hardship is, no documentation needed.
Want to know if your Wells Fargo loan is a portfolio loan and qualifies for the “no-doc” hardship streamlined short sale approval program? Just contact me with your loan#, and I’ll check it out for you.
Bottom line
(Take this next line with a huge grain of salt) It’s never been easier than now to complete a short sale. However, it’s never been more important than ever to work with an agent that is experienced with the process! This fact cannot be stressed more. Believe me, I know what I’m talking about. I’ve had to ‘clean-up’ a number of other botched and bobbled short sales. Save yourself allot of time and trouble and choose your agent wisely. [OK, off soapbox now.]
Michael Koenig
SFBayRealtor@Gmail.com