Despite the rising home prices, 25% of mortgages are still under water with homeowners requiring Principal Reduction or Mortgage Modifications that is not coming anytime soon. In fact, most homeowners have give up on getting help from their lenders to keep their home.
So, it’s no surprise that all 4 major US lenders including Wells Fargo, Chase, Banks of America and Citibank are offering cash incentives for short sales.
The simple reason is that money talks.
After all, how can anyone convince a homeowner who has not paid a payment towards their mortgages to move out and pay rent!!? That’s a very tough sell since the banks have been very slow to foreclose on properties.
Now, the banks appear to be serious about removing these non-performing notes from their books and have no choice but to offer an incentive for these homeowners to leave their house as part of a Short Sale.
These cash offers are in excess of the HAFA Short Sale limit of $3-6,000 dollars. This is why we are advising our clients to decline the HAFA Short Sale.In some cases, Chase has offered as much as $30,000 for a San Jose Short Sale homeowner!
You will need to confirm that your loan has not been sold to a 3rd party investor. We can utilize a 3rd party Authorization to help confirm this information.
Wells Fargo which manages the Short Sale approval of these Wachovia and World Savings, will require a handwritten letter stating that you are declining HAFA Short Sale as an option.
Even if have completed your bankruptcy you might still be eligible to receive these incentives for relation from Wachovia on your San Jose Short Sale. Wells Fargo Home Mortgage incentive program is supposed to be more conservative at 15-20k max which is good incentive for home owners whose home will never recover in value.
Contact Us if you have any questions on your San Jose Short Sale since these are limited time offers from these lenders who are offering Cash for Short Sales.