Rumors are flying about defaulting Sellers receiving 10s of THOUSANDS of dollars for short selling their homes. Is this true? Yes. Will YOU receive 10s of THOUSANDS of dollars? Probably not.
As a Real Estate Agent, we can never give you a guarantee that you will get any relocation money, as we cannot guarantee that your short sale will even be approved and close escrow. There are way too many variables to be able to determine that. Too many variables, and conditions, and exceptions that, quite frankly, are out of our hands.
All I can say is that you just need to TRY. If you don't TRY, you will never know.
So, for those of you who have heard these Rumors and have "underwater" loan with Bank of America, I am posting this update I just received. Be sure to particularly note the highlighted areas. (This is for informational purposes only.)
Cynthia Nemelka, CDPE
Certified Distressed Property Expert
Owner of RE/MAX Diamond Realty
27070 Sun City Blvd., Menifee, CA 92586
Short Sale Agent Update
Sept. 12, 2012
Short Sale Relocation Assistance Program:
Your clients could receive $5,000 to $30,000 in relocation assistance
Your financially distressed clients want to avoid foreclosure. You want to help them. So do we!
That's why Bank of America is excited to offer enhanced relocation assistance. Qualified homeowners who initiate a Preapproved Price Short Sale (without an offer) could be eligible to receive $5,000 - $30,000* in relocation assistance and owe no more on their mortgage with the sale of their property, depending on the investor involved.
Don't miss this limited-time offer to get your distressed clients the help they need by initiating a Preapproved Price Short Sale today at agent.equator.com.
Determining your clients' eligibility is easy:
Once you initiate the short sale at agent.equator.com, we will quickly evaluate the homeowner to determine if they qualify for the enhanced relocation assistance.
The homeowner must participate in one of the Preapproved Price Short Sale Programs, such as:
HAFA (Home Affordable Foreclosure Alternatives)
Bank of America's Cooperative Short Sale Program
Specific investor participation and eligibility criteria do apply to these programs.
Homeowners not meeting eligibility requirements for the enhanced relocation incentive may still qualify to receive $2,500 - $3,000 in relocation assistance from government- and bank-sponsored programs.
Frequently Asked Questions:
Q: Do I have to do anything special when initiating or completing the short sale?
A: No. But act quickly by initiating the short sale at agent.equator.com. This is a limited-time offer that your clients won't want to miss out on.
Q: If a short sale is initiated with an offer, will it qualify for this enhanced relocation assistance?
A: No. Short sales initiated at the time an offer is received do not qualify for the enhanced relocation assistance funds.
Q: Is the enhanced relocation assistance eligible to non-owner-occupied properties?
A: Yes, it is available to non-owner-occupied properties.
Q: Will the relocation assistance funds be reported on the HUD-1?
A: Yes, funds received at closing will be documented on the HUD-1, and a 1099-MISC will be issued.
Q: Can the relocation assistance funds be used to pay off existing liens?
A: Yes, the homeowner may use funds to pay off existing liens or to help with relocation expenses.
Q: Is the enhanced relocation assistance added to any other incentives, such as the HAFA or Bank of America Cooperative Short Sale Program incentives?
A: The homeowner incentive will be inclusive of the $3,000 HAFA incentive. For example, if the homeowner is eligible for $5,000, then $3,000 will be from the HAFA funds and the remaining $2,000 will be from Bank of America homeowner incentive funds.
Click here to read the press release.
* The relocation assistance payment is calculated based on the appraised value of the homeowner's property. The total amount will be no less than $5,000, but no more than $30,000. The payment will be delivered at the time of closing if the homeowner complies with all terms and conditions of the Short Sale Agreement, which include but are not limited to the following: a full walk-through appraisal must be completed and the homeowner must satisfy all junior liens and provide clear title for the property (the relocation assistance payment can be used to clear those liens). The short sale must close by Sept. 26, 2013. If the homeowner does not comply with all terms and conditions of the Short Sale Agreement, they will not receive the relocation assistance payment. The amount of any deficiency and relocation assistance will be reported to the Internal Revenue Service (IRS) on the appropriate 1099 Form or Forms. We suggest that the homeowner contact the IRS or their tax preparer to determine if they have any tax liability.