Seller relocation assistance in short sales
As a condition of any short sale approval, the lender will usually require the seller have no proceeds from the sale. However, many lenders/investors offer relocation assistance incentives to qualifying homeowners in a short sale. These usually apply when the sellers are owner occupants (not investors), and if there are no other complicating liens in the sale.
Relocation assistance broken down by investor:
FHA Short Sales:
In an FHA short sale, qualified owner occupant sellers are allowed an incentive of $3,000 with a successful closing. If there are unapproved closing costs, these funds may used and any payments to junior lien holders (if any) must first be paid through the use of this incentive, before it will be paid to the seller.
VA Compromise Sales:
Short sales on VA backed loans now offer a $1,500 relocation benefit to owner occupant short sellers.
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Conventional - Fannie Mae and Freddie Mac:
Most conventional loans are backed by FNMA and FHLMC. If you don't know who backs your loan, it's probably one of these two.
Fannie and Freddie now have standard guidelines where qualifying owner occupant sellers receive a $7,500 incentive, In addition to any funds paid to a junior lienholder.
VA Compromise Sales:
Short sales on VA backed loans now offer a $1,500 relocation benefit to owner occupant short sellers.
Portfolio Notes/Private Investor Short Sales:
While most loans are backed by the 4 above, there are some loans that are not subject to any standard guidelines. That would include portfolio loans, privately held loans and jumbo loans. Since there are no set rules for these, they can be trickier to navigate and do not have any standard relocation assistance rules. Seller incentives on these loans can go from $0 - $10,000.
Overall, you should always assume you will not receive any cash out of your short sale closing but if you do it will be a pleasant benefit.
There are qualifying guidelines to receiving any relocation incentives from your lender and those asked to contribute into their short sale will always be disqualified from receiving any incentives. A qualified short sale Realtor will be able to determine what relocation incentives if any - you may qualify for.
FIND OUT IF YOU QUALIFY FOR A SHORT SALE!
Absolutely seamless process from start to finish! Do NOT hesitate... simply call Minna! Our decision to short sell was heart-wrenching and daunting to consider. However, after initial contact with Minna, we felt reassured and confident that our judgment was sound. Both Minna's and her team's knowledge and experience in this area is clear: they are thorough experts. We can't imagine having a better experience. Thank you Minna Reid!
Last Updated on May 18, 2026 by Minna Reid
you have brought up a very wonderful points, thankyou for the post.
If I were lookg into short sale some of the properties and areas I invest in real estate, a cash home buyer company here in Florida, who’s best to reach out to for more information?
Thanks
It’s not clear whether you want to sell or buy, but I also have a Jacksonville Florida office, if you need help in northeast Florida.
Really informative content. Can you explain more details about FHA short sales?
Thanks
Thanks – I have written many articles about FHA short sales – here is a basic guide: https://reidrealestategroup.com/quick-overview-fha-short-sale-process/
Feel free to reach out to me if you need personalized help with your short sale.
Thanks, Minna. I will contact you if need anything.