Homeowners in Contra Costa who are struggling to make their mortgage payments may get some assistance from your lender with cash incentives to put your home on the market and do a “short sale”.  In many cases a short sale is a better option that a foreclosure for homeowners and the banks.

A short sale is the process that a home owner would go through to get the home sold and to have the bank accept less than the outstanding value of the loan as payment. Under the current California laws the outstanding debt will be forgiven, i.e. the lenders can’t request repayment at a later date.

The statistics show that on average in the United States a lender foreclosure can take up to 348 days. This is average because each state has different laws pertaining to the foreclosure process.  The 348 days does not include the time it takes to resell the home. This is a costly endeavor for the lenders, especially if the properties go vacant before the actual sale at the courthouse. In Contra Costa County the average number of days to foreclose for the month of January 2012 was 241 days as compared to January 2011 of 284 days. And that is why banks are encouraging short sales.

What Short Sale Bank Incentives Being Offered to Contra Costa County Homeowners?

  • Chase – $10,000 to 35,000. Not all chase loans qualify and must be offered by the individual Chase investor who holds the note
  • Wells Fargo up to $20,000
  • Citigroup Inc. $3000 t $12,000
  • Bank of America ran a pilot program in Florida for up to $20,000 – may bring in nation wide
  • HAFA – $3,000 for relocation expenses to transition to a new home

Not every lender is providing short sale incentives nor do all the lenders participate in the HAFA program. In many cases the banks are reaching out to you by sending a letter. While you may think that the letter from your lender may be another solicitation for request to bring your payments current so you don’t open it, you may be missing out. Open those letters because the help you need may be sitting on your kitchen counter.

If you are a Contra Costa homeowner that is having a problem with meeting your monthly mortgage payments because of hardship, or know someone that is having a hard time, then do not just sit back and wait. Seek out the professional that can help you and hopefully get that burden off of your back.

About Linda Urbick Linda

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