Featured News

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

The Beginner's Guide to Homeowner's Insurance

Congratulations! You've finally found a home you like and put in an offer. If accepted,…

11 hours ago

Do Pocket Listings Benefit Sellers in Any Way?

When buying or selling a house, you may hear real estate terms you're unfamiliar with.…

13 hours ago

Turn Your Dream Home into Reality - How to Find the Perfect Home For You

Dreams are a powerful force that helps people see the unseen. When not acted upon,…

2 days ago

5 Tips To Consider When Buying Property Abroad

Buying property abroad can be an exciting yet intimidating experience. With all the different aspects…

3 days ago

How Rental Bonds Work and What They Mean for Tenants

When you sign a lease agreement to rent a property, the landlord will ask for…

3 days ago


ERA Real Estate, a global franchising leader within the AnywhereSM portfolio of brands, announced today…

3 days ago