"In the past few months we've had short sale clients receive cash incentives that range from $23,000 to $35,000," said Richard Eastern, CEO of Washington Property Solutions.
Seattle, WA (PRWEB) October 16, 2012
Short sales in King County in the third quarter of 2012 climbed to their highest level since the Northwest Multiple Listing Service began tracking distressed property data in April of 2009, according to a new short sale report released today by Washington Property Solutions, a short sale negotiating firm.
The sales of bank-owned properties posted their lowest levels in two years, according to the Washington Property Solutions 3rd Quarter 2012 Short Sale Statistics Report.
The shift reflects some major changes in the way lenders are handling distressed properties, explained Richard Eastern, CEO of Washington Property Solutions.
"In the eight years I've been negotiating short sales I have never seen banks so eager to make short sales happen," said Eastern. "Lenders are drowning in bank-owned inventory and they are doing everything they can to avoid adding more distressed properties to their portfolio."
One strategy is to pay homeowners to sell their homes short rather than go through foreclosure. Two of the nation's largest banks, Chase and Bank of America, have been paying significant cash incentives to short sale sellers at closing.
"In the past few months we've had short sale clients receive cash incentives that range from $23,000 to $35,000," said Eastern. "One homeowner whose property sold for $164,000 received a $25,000 incentive from Chase, plus an additional $3000 from the federal government's Home Affordable Foreclosure Alternatives Program."
In addition to providing incentives, banks are also removing barriers that have made short sales more difficult in the past. Some lenders have sped up the time it takes to close a short sale by streamlining internal processes, according to Eastern. They are also more likely to forgive the debt on both first and second mortgages. All these measures make it easier for an underwater homeowner to sell their home, and easier for a buyer to purchase it.
The full report, including additional short sale and bank-owned property charts, can be found at http://www.washortsales.com/short-sale-statistics-reports/
About Washington Property Solutions
Washington Property Solutions is a short sale negotiating firm based in Bellevue, Washington. Founded in 2003, the company has helped brokers and homeowners successfully negotiate over 800 short sales with a 90% success rate in closing. Washington Property Solutions also consults with homeowners on qualification for the Home Affordable Foreclosure Alternatives (HAFA) process and the Washington State Mortgage Foreclosure Fairness Act (FFA). Washington Property Solutions negotiators are licensed Windermere Real Estate brokers.
For more information, visit http://www.washortsales.com
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