Anyone associates with West Sacramento Short Sales knows that a short sale
saves the lender / investor money vs. foreclosure. Usually 20-25% in most
cases. Two properties sold at the exact same price, one Bank Owned, one a Short Sale
– the lender loses less on the short sale than the REO and that’s a fact. That
is the major reason banks do short sales in West Sacramento.
So what about the stories we hear
around Chase and Bank of America offering anywhere from
$3000 to $45,000 for a borrower to complete a short sale?
Are the stories true? The answer is yes. Of course there are stipulations and
not all loans qualify.
In the case of Chase,
the loans are usually old Washington Mutual sub-prime negative amortization or “pic
a Pay” loans as they were referred to. These old WAMU loans more than likely
are portfolio loans, meaning Chase
still holds the note or they are loans where the documentation is so messed up
that it is cheaper to pay the borrower to complete the West Sacramento short sale than risk further
litigation if it forecloses. We personally have completed Chase
short sales where the borrower received $10,000 to complete the short sale
and the property only sold for $30,000.
As for the Bank of America program, theirs is a little more
stringent. B of A requires the borrower to settle with the second lien holder
on their own where normally B of A would make a contribution to settle the
second – usually 6% of the unpaid balance. Now I have not personally completed
a Bank of America Short Sale where the borrower
received a payment at close of escrow but it is our understanding that those
loans are old Countrywide loans of basically the same type and condition as the
Chase loans where cash incentives are offered and for the same reasons.
The money is there and if you
qualify it can be a nice windfall. For more information give us a call.
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 or
for the latest West Sacramento short sale information. Call me
today and sleep better tonight; you’ll be glad you did
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