In short sale mecca, we are lucky enough to get lots of experience negotiating short sales. After all, with so many short sales coming our way in Southern California, this experience is a given.
Almost every newspaper that you read or article that you see on the Internet discusses our nation’s economic future. I came across this multi-dimensional map that really gives a good feeling for what’s really going on across the nation.
So, check out this interesting map courtesy of Newsweek magazine’s 2011 Half Time Report (and stats courtesy of RealtyTrac).
As you can see from the map, California is one of the states that continues to report new foreclosures (and many more short sales).
If you are working the distressed property beat in Southern California and this map hits home for you, than you may be interested in hearing about all of the great incentive programs available to short sale sellers.
Here’s a quick overview of the programs:
HAFA: In this program, qualified households who participate in this program (which has both short sale and deed-in-lieu of foreclosure options) receive $3000 at closing. (Fannie Mae and Freddie Mac also participate in HAFA, but the incentives vary.)
Bank of America Cooperative Program: In this program, qualified households that participate will receive $2500 at closing.
TAP: In this program, qualified California households that participate in a short sale or deed-in-lieu of foreclosure will receive up to $5000 at closing.
Wachovia: Wachovia Bank frequently sends borrowers letters asking them to participate in a short sale and offering an incentive in the letter. Sellers should read their mail and save the letter so that they can redeem the incentive at closing (usually between three and five thousand dollars).
Litton: Litton Loan Servicing frequently sends borrowers letters asking them to participate in a short sale and offering an incentive in the letter. Sellers should read their mail and save the letter so that they can redeem the incentive at closing (usually between three and five thousand dollars).
Chase Bank: Chase Bank is now sending certain borrowers letters offering them the option of participating in a short sale for a significant incentive (often between 20,000 and 35,000 dollars). Read the fine print on the offer and follow all of the rules in order to receive this incentive at closing.
With all of these options on the table, it’s more likely than ever that sellers may select short sale over foreclosure. So, unless you have a huge REO account, now might be as good a time as any to consider short sales as a viable component of your business plan. After all, that map above does not lie.