Banks are more willing to do more short sales now than in the past
Published On: February 20, 2012 Posted by: TownsRealty
Lenders are allowing more short sales by financially strapped homeowners and a few and between homeowners are even getting cash to complete the short sale. The financial incentives are random and infrequent and lenders won’t say how often they extend such incentives.
Typically, short sale incentives are more common for loans in states where foreclosures take more time.
In November of 2011, short sales accounted for more than 9 percent of single family home sales and were up 32 percent from the year before.
JP Morgan Chase went national with short sale incentives offers last year, followed by Bank of America and Wells Fargo.
The reason few of the big lenders are offering these short sale incentives is because they can save money. The expenses involved in completing a foreclosure are quite expensive.
It’s a lot cheaper for the lenders to shell out short sale incentives rather than going through a long foreclosure process.
When a loan modification isn’t possible, a short sale may be a better and faster solution than foreclosure.