I can't possibly follow every single federal and local assistance program available in Sacramento for sellers of short sales. There are so many of them. But I do try. Some have such tight restrictions that few people qualify. That's how government leaders can say they are helping. They put out programs that help only a limited number of people and then say, but look at our fabulous program and all that we are doing. Jack crap.
Like loan modifications. Good idea. Bad implementation. Ask any Sacramento short sale agent, and she will relay the horror stories she's heard from her many sellers who were promised and then denied by HAMP over and over.
However, there is a program that has begun to attract more servicers. The kicker in this seems to be the income limitation. To qualify, your income must fall within 120% of the low-to-medium HCD Area Median Income (as defined by the California State Department of Housing and Community Development) for a family of four in the community where you live. You also must write a hardship letter, and your loan must be in default or about to go into default. That criteria fits a lot of people.
If you are presently approved for the HAFA short sale, that program pays up to $3,000 at closing for relocation assistance, which is just a fancy way of saying it will help you to move out of the house. But the government doesn't care what you do with the money. If you wanted to, you could buy a couple of first-class plane tickets to Maui, which is probably what you deserve for weathering the short sale.
But this is the thing, if you qualified for HAFA, you probably also qualify for the Keep Your Home California TAP program. The TAP program is a small part of the KTHC program that does not let you keep your home but instead pays you up to $5,000 to leave it. Yup, believe it. $5,000 + $3,000 = $8,000 for doing a short sale!
Unfortunately, not very many servicers are on board with the TAP program yet, but more are evidently added all the time. If you are doing a short sale with any of these lenders, sign up for the TAP program. You just might qualify. Here is a list of those now participating:
- California Department of Veterans Affairs
- CalHFA
- Central Mortgage Loan Servicing Company
- Community Trust / Self Help
- Everbank / Everhome
- First Mortgage Corporation
- Flagstar Bank
- GMAC
- Guild Mortgage Company
- Midland Mortgage Company
- Saxon Mortgage Servicing, Inc.
- Vericrest Financial
*TAP is the acronym for Transition Assistance Program.
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Certified HAFA Specialist
My Sacramento Real Estate Listings
Elizabeth Weintraub is an author, home buying columnist for The New York Times-owned About.com, a Land Park resident, and a Land Park real estate agent who specializes in older, classic homes in Land Park, Curtis Park, Midtown and East Sacramento. Weintraub is also a Sacramento Short Sale agent who lists and successfully sells short sales throughout the four-county Sacramento area. Call Elizabeth Weintraub at 916.233.6759. Put 35 years of real estate experience to work for you. Broker-Associate at Lyon Real Estate. DRE License # 00697006.
The Short Sale Savior, by Elizabeth Weintraub, available at Amazon.com.
Lyon Real Estate is not associated with the government, and our service is not approved by the government or your lender. Even if you accept this offer and use our service, your lender may not agree to change your loan.
Photo: Unless otherwise noted in this blog, the photo is copyrighted by Big Stock Photo and used with permission.
The views expressed herein are Weintraub's personal views and do not reflect the views of Lyon Real Estate.
Disclaimer: If this post contains a listing, information is deemed reliable as of the date it was written. After that date, the listing may be sold, listed by another brokerage, canceled, pending or taken temporarily off the market, and the price could change without notice. It could blow up, explode or vanish. To find out the present status of any listing, please go to elizabethweintraub.com.
