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Real Estate Ramblings

James Yoakum's Philadelphia Real Estate Blog

By James Yoakum, SFR | Agent in Philadelphia, PA

$1500 To Sellers in A Short Sale - Take it While you Can!

The Obama administration has sweetened the pot for home-sellers who owe more on their mortgage that the property can sell for (article here). With the new program, taking effect April 5th, a seller who completes a short sale will receive $1,500 in 'relocation assistance' to incentivize them to get the deal done quickly and move on. The government will also give cash incentives to banks and loan servicers to encourage them to work through the backlog of underwater properties currently on the market. Short sales benefit sellers because they are less harmful to their credit score than a foreclosure. They also get the property on the market more quickly than the foreclosure process which means the home has less potential time to sit vacant and deteriorate.

If you're thinking of selling your home but worry that your mortgage may be higher than the home's value give me a call today to discuss the short sale option and how this new program could ensure that you at least get something for your home.

Comments

By Alma Rivera,  Mon Mar 8 2010, 14:47
We still have to wait and see if what Obama proposes is actually agreed upon and then accepted and implemented by the banks. As long as short-sale lenders don't face some type of penalty for not providing a speedy response to short-sale offers, we will continue to have buyers that walk out of the deal and sellers that unavoidably end up in foreclosure in spite of having presented several offers to their lenders over a period of sometimes more than 14 months!
By Tonya Brobeck,  Mon Mar 8 2010, 15:27
I hardly think $1,500 is incentive to someone who is behind $30,000 and anxiously waiting for months to have a short sale approved. In fact, I don't think anyone who looses their home should get a reward for buying above their means....just my opinion though. The market will eventually correct, the governments attempt to soften the fall is only prolonging the inevitable
By Debbie Harris,  Mon Mar 8 2010, 16:02
Hmmm, $1500 to short sale their home and a good possibility of being cleared of the deficiency, saved credit as well as living in their home for months free is a very good incentive. Not all that are losing their home is doing so because they were living above their means. A lot have lost their jobs due to the economy so I don't really think we should be judging so harshly.
By Voices Member,  Mon Mar 8 2010, 16:04
You can ask for relocation assistance for short sale sellers now. Just make sure it's on the HUD-1 from Day One.
By Voices Member,  Wed Mar 10 2010, 08:08
James, this plan floating out there is a joke. $1,500 for the seller to move?! $1,000 or so to the lender to take a huge hit and mortgage loss and give up rights to deficiency clause. No way the banks will view this anal plan as incentive. Grasping for straws won't work, not last year with tax incentives, not now with laughable tender offers to lenders. Richie

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