Since the Top 4 Major US Lenders have started offering large relocation incentives, we are advising our San Jose Short Sale clients to decline HAFA Short Sale as an option! The reason is very simple. HAFA which stands for Home Affordable Foreclosure Alternative will offer home owners $3,000-$6,000 when they Short Sale their San Jose home. In contrast, Top 4 major lenders including Chase, Citibank, Bank of America and Wells Fargo are now offering large sums in the range of $10-30,000 relocation inventive. So, there is no reason to elect HAFA Shor Sale as an option.
But before you decline the HAFA Short Sale, make sure that your loan has not been sold to a 3rd party investor and is still owned and serviced by these Top 4 lender who offering large relocation incentives. For our clients we use a 3rd party Authorization to help confirm this information.
To qualify for these relocation incentives from your lender, you lender will need a handwritten letter stating that you are declining HAFA Short Sale as an option. These large incentive are the best options and they might not last. In fact, Wells Fargo incentive letters that are being sent out on Wachovia and World Savings loans have an expiration date which is requires the home owners to contact the Wells Fargo if they are interested in taking advantage of these incentives.
Even if have completed your bankruptcy and you still have an underwater mortgage it might be worth to explore some of the bank’s Relocation Incentives to Short Sale your San Jose home. Some lenders like Chase are offering $25,000 for Relocation. Wells Fargo Home Mortgage incentive program is more conservative at $15-$20k which is still a substantial amount compared to HAFA Short sale relocation incentive.
Is it possible they are starting to feel guilty for what they have done to this economy?! We suspect not. But either way, this a golden opportunity to take advantage of these incentive since they might not be around in 2014. In addition, any such contribution might be subject to income taxes if Congress and State of California do not extend the Tax Forgiveness acts in affect in 2013.
Contact Us if you have any questions on your Short Sale.