Short Sales & Relocation: Which Banks Will Pay Moving Fees?

Dear Shari,

I try to watch you on the news as much as I can and know you are well aware of whqaat is going on regarding short sales. Unfortunately, I am going through one right now with Citi as my servicer and Co merica as my lender. They are telling my agent that Comerica does not want to give me any money to relocate which I need badly. Can you suggest what I could do? Thank you and hope to hear from you soon. Have a good day.

Dear Patti,

I’m so sorry to hear that you’re struggling with this. If your loan is a Fannie, Freddie or FHA loan you may be in luck.  Ask if your loan qualifies for a HAFA short sale – the servicers are supposed to try that first but Im being told still often do not. But not every lender is required or does offer re-location money in connection with a short sale on every loan. Generally the lender-servicer will determine if the net to them and the investor is more if they foreclose or if they approve the short sale. Unfortunately oftentimes the decision is also influence by at least some degrees of what appears to in competency. Part of the trick is finding out whetherCiti  or Comerica – your loan is subject to a legal order or agreement to provide relocation money or whether doing so is or is not  something they have generally done. I have not heard of Comerica doing so. I have heard of Citi doing so in targeted areas.  If you cant get relief from the lender, maybe the Realtors or seller will kick in some commission or agree to a higher price or to perhaps allow you to stay in the home free of charge for a month after closing so you can save up a bit? Please let us know how it works out.  

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