Short Sale Incentives For Cash-Strapped Homeowners

Two of the nation’s biggest lenders are giving away cash rewards to struggling Florida homeowners who agree to stave off foreclosure by doing a short sale instead, according to reports in the Florida Sun-Sentinel.

 

Wells Fargo and JP Morgan Chase offer short sale incentives to homeowners. Courtesy of Foreclosure News

Wells Fargo and JP Morgan Chase haven’t made any official announcements about the initiative, but indebted homeowners have reported that the two companies have offered them cash incentives of anything between $10,000 and $20,000 to sway them into opting for a short sale.

As part of plans to assist homeowners who want to avoid a foreclosure, the banks are already operating what has been termed a “cash for keys” program, whereby homeowners can get money in return for agreeing to give up their homes. However, the reported short sale incentives would appear to be something new, say industry observers. Previously, short sale transactions have always been seen as the bank doing a favor to the struggling homeowner, according to the experts.

 

Cash incentives range from $10k to as much as $20k, say homeowners. Courtesy of Foreclosure Blog

Intriguingly though, not all homeowners have been offered short sale incentives, and banks won’t let on why certain people are being excluded – they reveal no criteria, other than to say that such incentives are determined on a case-by-case basis.

Experts say that the new short sale incentives are the most practical method for both banks and homeowners to get out of a sticky situation – the homeowners avoid foreclosure, while the banks get to write off bad loans, avoiding the need to foreclose, which can be a lengthy process, averaging 619 days according to the latest figures from RealtyTrac Inc.

According to Wells Fargo, the short sale incentives have been offered in states “Where the process of foreclosure appears to be lengthening,” says their spokesperson Tom Goyda.

 

Mike Wheatley

Mike Wheatley is the senior editor at Realty Biz News. Got a real estate related news article you wish to share, contact Mike at mike@realtybiznews.com.

Recent Posts

Consumer confidence in housing falls to lowest point in 11 years

Fannie Mae said in a monthly survey released this week that consumer’s confidence in the…

11 hours ago

Will Josh Hall Become the New Face of Real Estate?

Do you know who Josh Hall is? If you don't you soon will do. Josh…

17 hours ago

How to Become a First-Time Landlord

Becoming a landlord is one of the easiest ways to invest in real estate. If…

23 hours ago

SEO: How to Optimize Your Real Estate Website

Every savvy real estate professional knows that the bulk of your marketing and brand-building efforts…

2 days ago

Ask Brian: When You Marry Someone Do You Marry Their Debt?

Ask Brian is a weekly column by Real Estate Expert Brian Kline. If you have…

2 days ago

What Do Real Estate Attorneys Do For Sellers?

When an attorney for real estate represents a seller, they could be involved in drafting…

3 days ago