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These homeowners got paid money to short sell
by Annie Christian
Aug 02, 2012 | 5169 views | 0 0 comments | 21 21 recommendations | email to a friend | print
Short sale past: Homeowners have been short selling in Reno/Sparks since 2007 just to avoid foreclosures. Short sale has become a common household word in northern Nevada and nationwide. Real estate is a popular topic on the radio, on television and in newspapers everywhere and every day. Just because we hear about it does not mean we all understand it. Since the HAFA program came out in April 2010, selective homeowners have been qualified by their banks to receive $3,000 for relocation incentives. This money is awarded to the homeowner at the close of escrow on the short sale on their primary residence. Recently in 2012, HAFA updated their guidelines to include investors who are short selling their rental/investment properties. Investors now also qualify to short sell and receive 100% debt forgiveness on their mortgage loans. Some banks are extending relocation incentives up to $3,000 to the tenants.

Q: How do you qualify for the relocation incentive program?

A: Contact your bank to ask what program you can qualify for. Ask to be qualified for the HAFA program, Coop Program or any internal proprietary program they may offer you.

Short sale present: Homeowners and investors (residential and commercial) continue to struggle month after month to make their high payments with no help from their banks. Banks cannot refinance most mortgage loans because there is a lack of equity due to the huge reduction on overall market value everywhere. A small percentage of homeowners received limited temporary relief from their banks, known as temporary loan modifications. In some homeowner cases, the reduction in their monthly mortgage is as small as $50 dollars a month. That is not much help at all. Most homeowners who have called me in the past six months have been told by their banks to short sell. Yes, They will receive relocation incentives when they complete a short sale.

Q: Why are homeowners short selling in 2012?

A: Most homeowners short sell because their expenses have exceeded their income. Most homeowners, who have suffered a job change due to recent layoffs, are re-employed at lower pay rate – sometimes as often as 50-60 percent less than their previous job. Some homeowners are still unemployed in the wake of our 14 percent unemployment rate in northern Nevada.

Imagine trying to make end meets, paying high mortgage payments and providing for your family at a 50 percent salary reduction. For most homeowners it is more realistic to short sell their homes now. To be financially fit after a short sale is a not too distant goal most homeowners can attain.

Another most common reason to short sell is when the homeowner is approaching retirement age. Their retirement income is substantially less than the regular wages and short selling to be financially fit for the years retirement just makes sense.

Q: What are homeowners receiving as relocation incentives?

A: Below is a list of relocation incentives my clients received in 2012 so far:

*4501 Mt Bachelor - Seller received $4,000 FHA incentive

*9761 Crystalline - Seller received $3,000 HAFA incentive

*7505 Younghans - Seller received $3,000 HAFA incentive

*730 Colorado River - Seller received $1,000 relocation incentive

*17680 Boulder Springs - Seller received $1,000 relocation incentive

*1465 Prospect - Seller received $3,000 HAFA incentive

*610 E Huffaker - Seller received $3,000 HAFA incentive

*3369 Bentgrass - Seller received $3,000 HAFA incentive

*3925 Dominus - Seller received $3,000 HAFA incentive

*6155 Telehurst - Seller received $12,000 Coop incentive

As you can see, different homeowners qualify for different programs and receive various relocation incentives in every short sale. Please take the time to look into what relocation incentives you can qualify for. You can enjoy the benefits of 100 percent debt forgiveness and get paid to short sell from your banks.

Short sale future: The good news is here. Banks and lenders are starting to realize that they can preserve a whole lot more cash if a home does not have to go through the full foreclosure process. Homeowners should take advantage of these relocation incentives programs by calling their banks to qualify. Most banks participate in the HAFA program, be sure to confirm their participation. Some banks are offering proprietary programs as much as $35,000 to short sell.

If you cannot refinance and cannot make the high monthly payment especially after the loan has been modified, it is time to short sell.

Annie Christian is a real estate broker and owner of The Annie Christian Real Estate Group. She helps with everything from buying and selling to foreclosure and short sale. To submit a question, call 351-5117. Her website is
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