If you or someone you know is facing the loss of their home you should know that lenders are now, more than ever, offering incentives to Sellers to complete a short sale. Homeowners should speak with their lender to see which programs they qualify for.The most common incentive program is HAFA. Sponsored by the government, HAFA will give eligable homeowners $3000 at closing to help with moving and other expenses. It also protects the Real Estate Professional's commission and forgives the Seller of the debt. The homeowner will receive a 1099-C for tax purposes.
For individuals not eligable for HAFA some lenders are offering alternatives. One example of this is Bank of America's co-op program for sellers. They will allow up to $2500 to the Seller at closing to help with expenses.