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Some Homeowners Get Cash Incentives for Short Sales
Homeowners facing possible foreclosure are increasingly being given cash incentives to complete short sales as lenders opt for a quicker resolution.
Shorts sales have been on the rise, but cash incentives are a fairly new twist, according to a report by USA Today.
Real estate brokers say the incentives are infrequent – at least for now.
Short sales are typically when borrowers are allowed to sell their homes for less than the total of the outstanding mortgages. A short sale can actually save lenders money, compared to a dragged-out foreclosure.
In Florida, for example, foreclosures move through the court system and 50 percent of loans in foreclosure are more than two years delinquent.
Here are some examples of cash incentives provided by USA Today:
* JPMorgan Chase expanded short-sale incentive offers last year, paying up to $35,000 in some cases.
* Bank of America is testing incentives from $5,000 to $25,000 in Florida to see if they should be expanded to more states. The Florida program began last fall.
* Wells Fargo’s incentive offers range from less than $3,000 to $20,000
In November 2011, short sales accounted for more than 9 percent of single-family home sales – that’s 32 percent surge from a year earlier, according to CoreLogic.
For more information about Short Sales in Maryland, DC or VA you can reach us at the following:
Realty Direct Inc.
1401 Mercantile Lane, Suite 100
Largo, MD 20774