Does a home owner receive any money when taking part in a short sale?
Many home owners wonder if a short sale means that they will walk away from the transaction with nothing. That in fact isn’t always the case and in California thanks to the big mortgage settlement there are programs that allow the home owner to apply for relocation funds even if the lender themselves aren’t offering any. It doesn’t matter if it is a piece of South Gate, Ca Real Estate or a property up north, as long as it is owner occupied and in California the home owner can apply to the program for assistants.
The program goes by the initials TAP that short selling home owners can apply for through the Keep Your Home California initiative. The Transition Assistants Program (TAP) entitles a home owner to receive up to $5,000 in relocation assistants.
The Home owner must qualify for the funds and can have their agent and or broker assisting them with their short sale guide them through the application process.
Unlike the short sale process where a home owner doesn’t usually have to speak to their bank if their working with a knowledgeable Real Estate Agent and or Broker, when applying for the TAP program through Keep Your Home California the Home owner must go through a phone interview.
We at our office in South Gate, Ca invite the home owners we are working with to come in and or have us conference call their interview so that we can assist them with any questions they might have or not understand while speaking with Keep Your Home California.
Relocation money isn’t always available for every transaction and your Agent and or Broker must request it on the initial documentation submitted to your bank when applying for a short sale to ensure if it is available that you receive it.
There in some cases are extra incentives offered to home owners by their banks to take part in short sales and those have ranged from $2,000 all the way up to $35,000 on the high end. Again these aren’t typical but have been offered by banks and received by home owners. The key is paying attention to the mail you receive from your bank because sometimes the offers to receive additional funds if you take part in a short sale come in writing directly to the home owner before even formally submitting their application for a shortsale and have an expiration or good through date on the offer letter.
When we consult with home owners regarding short selling their property we advise them that it isn’t the end of their home ownership life and in fact can be the start to the path of home ownership again. The relocation money is one of the first opportunities given to them on that path.
Except for the relocation funds or extra incentives that might be offered to a home owner by their banks, there isn’t any other type of money that a home owner taking part in a shortsale could receive. It is important to understand that any outside of escrow arrangements can be considered fraud and may lead to potential criminal prosecution. It is very important that a home owner is working with a reputable real estate professional when trying to sell through home in general but especially when trying to do so through a short sale.
We don’t always push for a shortsale as the first solution in fact we consult with distressed home owners and interview them to insure that whatever options may be available to them are explored fully before moving forward with any particular one. A shortsale isn’t a one size fits all solution and you as a home owner must understand that, and realize if your speaking to a Real Estate professional who is strictly just pushing a shortsale and isn’t asking about other foreclosure avoidance programs that you may have tried or heard about then that could be a red flag and you might want to get a second opinion.
We consult with clients 7 days a week out of our South Gate office and can come to you in your home if need be by appointment. The thing is that no one can help unless you reach out. Like we mentioned previously the longer you as a home owner in trouble wait the less options that are available.
Give us a call at (877)801-1923 Ext-101 it costs nothing or send us an email at info@thinkingshortsale.com and we will be happy to review your current situation. If you want to know what your home is worth you can go to www.homepricingmadeeasy.com and if you just want to read and learn more about short sales and our team you can go to www.thinkingshortsale.com
Your financial future is in your hands and how it will look all depends on you and your actions now.
Guillermo Serafin
Phone: (877) 801-1923 Ext. 101
Fax: (877) 803-3190
Berkshire Hathaway HomeServices
California Properties
BRE #01471159
info@thinkingshortsale.com
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