Banks Offering Incentives to Sellers in Short Sales | Real Estate
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. Like HAFA they will also forgive the debt.
In addition to having better long term effects on credit, recovery, and outstanding liabilities on the cancelled debt, Short Sales can also give assistance for qualifing homeowners to receive help.
With any questions visit www.shortsalegeorgia.net.