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Saturday, June 30, 2012

Bank of America $30,000 West Sacramento Short Sale Incentive

The big news is Bank of America has announced its propriety West Sacramento Short Sale program. Under the new West Sacramento Short Sale program Bank of America is offering between $2500 and $30,000 to those who qualify and agree to a co-operative West Sacramento Short Sale. The stipulations are the escrow must close by September 26, 2012, the seller must clear all liens and encumbrances and Bank of America gets to set the sales price. Bank of America will allow all or part of the West Sacramento Short Sale Incentive to be applied towards paying off or clearing any liens on the property. The seller is responsible to deliver clear title.
  
So what is the down side you ask? There are several watch outs and if not handled correctly, they could be devastating to the seller. The first and probably most important is the West Sacramento seller delivering clear title. If you have a second mortgage you will be responsible for the payment required to secure the release of lien. In a traditional West Sacramento Short Sale the first lienholder would be responsible for that payment. Now, Bank of America will allow you to use your incentive money to clear the lien but if that is the case, what good is getting the money if you have to pay it all to the second – the incentive money from Bank of America is taxable. The rest of the story is the second may not allow you to receive payment at close which would bring up another set of issues.

The second watch out is allowing Bank of America to set the sales price. If they set the price to high and the property does not sell you are obligated to do a Deed In Lieu of Foreclosure. Also called a friendly foreclosure – it is still a foreclosure and will show up as such on your credit report.

Under certain circumstances this has the makings of a good program if AND ONLY if it is handled correctly. Make sure your West Sacramento Short Sale Agent is a Certified Default Advocate and fully understands the pros and cons of the program. For a free consultation call my office at 916-396-7487 today.

To get a better idea of when your West Sacramento home will be worth what you owe, log in to www.shortsaleandloanmod.info for a free estimate or call me today for a free no obligation consultation. Call me today and sleep better tonight; you’ll be glad you did

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