We are doing a short sale on a tenant occupied duplex. One unit is vacant, the other is still occupied. Ocwen says to put $10,000 on the HUD as an incentive for the tenant.
Does anyone have experience with this particular situation? Does the one tenant get all the money? Do they get a check in exchange for keys? Who is responsible to handle this transaction?
Any insights you can provide will be appreciated.
WEICHERT, REALTORS - McCarthy Associates
some banks are giving incentives to tenant if the owners dont live in the property. They will do one or the other..So yes it goes to the tenants. Escrow will cut the check for them. unless you can negotiate half for sellers and half for tenants for keys..
Is the transaction going through HAFA? If so, HAFA allows relocation incentive to tenants if they are occupying the home. The check will be cut to the individual listed on the settlement statement / occupying the property. Escrow/title/closing attorney cuts the check at closing.
Let me know if you have any questions!