Filing for bankruptcy has been used by some home owners to postpone the inevitable decision on their underwater mortgages! But according to a friend at the Short Sale division of a major bank, these bankruptcies have now been discharged and these home owners are will face foreclosure since their home values have not risen enough to cover the loan on these home. So, Short Sale of your San Jose still remains an option for these home owners who have completed a bankruptcy.
Given that Top 4 major US banks are now offering relocation funds; Short Sale home owners finally have a real incentive to sell their homes and move on. This is the most rational outcome in these scenarios because full employment for most Americans will be a distant memory. Add to that the stagnant and declining income for most Middle Class American will eventually reduce the rate of home ownership. In fact, according to US Census Bureau the rate of home ownership has declined to the lowest levels since 1995. In fact, Western State this rate has dropped to 59.4% in the most recent survey conducted in 2012.
So, if you have completed your bankruptcy and have an underwater mortgage it might be worth to explore some of the bank’s Relocation Incentives to Short Sale your house. But before you consider giving you bank a 2nd chance and cooperate with them on a Short Sale, you should contact Department of Housing and Urban Development (HUD) and talk to a counselor about ALL your options to avoid foreclosures.
Keep in mind that in case of a HAFA Short Sale of a 1st lien, the banks are only offering a limited amount of Relocation Funds which ranges from $3,000-$6,000 dollars. But you can decline the HAFA Short Sale option and opt for these larger relocation funds from these lender. Keep in mind however, that this letter has to be hand-written and must include your loan number and address. In fact, if you have a loan from either Wachovia bank or World Savings bank (now owned by Wells Fargo); it’s quite possible that Wells Fargo has already sent you a notice about such an incentive.
Some banks like Chase are offering $25,000 for Relocation. Wells Fargo Home Mortgage incentive program is supposed to be more conservative at 15-20k max which is still a subtantial some of funds has also jumped into the foray. Is it possible they are starting to feel guilty for what they have done to this economy?!
Dream on and Contact Us if you have any questions on your Short Sale.