Making money from the short sale of your home.
You will not receive any funds directly from the short sale of your home; the sales proceeds go to your lender to settle your mortgage. However, there are many lender and government programs that provide cash payments to borrowers who short sale their home.
Government programs that pay cash incentives to sellers.
The government is encouraging homeowners to avoid foreclosure by offering incentive payments for completing a short sale. Programs such as HAFA and FHFA may pay sellers up to $3,000 cash upon closing of the sale.
Additional cash payments from your lender for completing a short sale.
Many of the major lenders also offer cash incentive payments (up to $35,000!) to borrowers for completing a short sale. In some cases you can “double-dip” - receive a cash payment from both a government program and from your lender.