It’s finally time to list a short sale – tips

Short Sale Incentive Programs

Okay, for those of you naysayers who avoid short sales like the Plague, I think it is possible that now might finally be the time to start taking short sale listings. (Of course, personally, I feel that the time began in 2007, but I’m confident now more than ever that real estate agents should get on the bandwagon.)

Here’s why: there are so many incentive programs offered by the servicers, the secondary market, and the Government that more and more sellers are definitely going to be taking advantage of the incentives.

Check out these options available for short sale sellers:

HAFA: In this program, qualified households who participate in this program (which has both short sale and deed-in-lieu of foreclosure options) receive $3000 at closing. (Fannie Mae and Freddie Mac also participate in HAFA, but the incentives vary.)

Bank of America Cooperative Program: In this program, qualified households that participate in this short sale program will receive $2500 at closing.

TAP: In this program, qualified California households that participate in a short sale or deed-in-lieu of foreclosure will receive up to $5000 at closing.

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Wachovia: Wachovia Bank frequently sends borrowers letters asking them to participate in a short sale and offering an incentive in the letter. Sellers should read their mail and save the letter so that they can redeem the incentive at closing (usually between three and five thousand dollars).

Litton: Litton Loan Servicing frequently sends borrowers letters asking them to participate in a short sale and offering an incentive in the letter. Sellers should read their mail and save the letter so that they can redeem the incentive at closing (usually between three and five thousand dollars).

Chase Bank: Chase Bank is now sending certain borrowers letters offering them the option of participating in a short sale for a significant incentive (often between 20,000 and 30,000 dollars). Read the fine print on the offer and follow all of the rules in order to receive this incentive at closing.

With all of these options on the table, it’s more likely than ever that sellers may select short sale over foreclosure. So, unless you have a huge REO account, now might be as good a time as any to consider short sales as a viable component of your business plan.

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