FREE Money But Only If You Sell Your Home – Good morning everyone. If I said I can get you $20,000 dollars to sell your home, would you take me up on it??
According to a recent article posted by the LA Times, the “five biggest US mortgage servicers were told this week at a private meeting with regulators to consider paying delinquent borrowers up to $21,000 each as part of a broader settlement of the foreclosure crisis”. Yes you read that correctly, twenty one thousand dollars . . .
This proposed program named “cash for keys,” asks that America’s biggest lenders, (including, possibly, Fannie and Freddie, as well as Bank of America) pay an incentive to get borrowers to leave their homes quickly, and in good condition. This increase from the $3000.00 we had been seeing is due to the fact that Banks want these properties back and they want them now. You need to ask yourself at this point why a Bank wants a “bad asset” so badly, more so why they are paying to get that debt back – well, here’s the answer.
An estimated 4.8 million Americans are currently 90+ days behind in their mortgage payments, meaning that many of these homes are about to be foreclosed on. Among this staggering number of borrowers, many current homeowners would be eligible for up to $1,000 to seek independent financial advice and up to $20,000 in cash as a “fresh start” payment towards living costs in a new home. This will be a huge win for someone in crisis and in need of a tangible way out.
In fact, “cash for keys” is not entirely a new idea. Courts are totally unable to keep up with the number of foreclosure proceedings initiated since the real estate crash. Hard-hit areas like California, Arizona, and Nevada have the taxed the court system so heavily it has forced retired judges to return to help in certain Counties. As we all know, we have our own set of serious financial issues to deal with here in San Diego, the last thing we need is more foreclosures.
So of you know that my wife works for a major Bank in Short Sale. She continually has to restructure current and pending Short Sale approvals due to the fluid nature of the market. “Guidelines seem to change almost weekly” she says. Between the dysfunctional HAFA system and being forced to deal with investors as to recovery/loss amounts, adding in another seller incentive is just more “busy work”. “I guess only time will tell to see if giving our customers more incentive to sell will help me”.
These new programs will benefit renters as well. If the homeowner informs their tenant that they are selling the home, the homeowner will be allowed to assist their tenant with a portion of the incentive money. This could be a huge asset to have when it comes to having that difficult conversation. Tenants do not want to hear the dreaded “I need to sell the house” speech. Many tenants were homeowners who sold their homes due to foreclosure or short sale. Being sensitive to that aspect is huge and I think that having a resource to help everyone involved is a great idea.
If you are a homeowner looking to sell and need straight answers, then call my office today. Short Selling is not a difficult, painful process -it’s actually quite the opposite.