Banks have not only been agreeing to a short sale – where a home is sold for less than the outstanding mortgage balance and the unpaid balance is forgiven – but also giving the seller a bonus of hundreds or thousands of dollars.
Washington DC (PRWEB) March 29, 2012
Homeowners who are delinquent on their mortgage payments and facing a short sale or foreclosure may be surprised by a growing trend: A large cash incentive from the lender to close the deal. Though the rules and circumstances are not entirely clear, real estate agents in the D.C. Metro area have been seeing an increase in this practice by major banks in the past year.
Marc Cormier of Tania Ivey Real Estate Group/Keller Williams Realty states, “Banks have not only been agreeing to a short sale – where a home is sold for less than the outstanding mortgage balance and the unpaid balance is forgiven – but also giving the seller a bonus of hundreds or thousands of dollars.” He notes that he has heard of incentives being anywhere from $1,000 to as much as $35,000 per seller.
So far, Chase Bank has offered the most (and the largest) incentives for completing a short sale, but Citigroup, Bank of America, Wells Fargo and other lenders have also made cash payments to homeowners. The question is, why would lenders forgive the remaining debt as well as giving an incentive to agree to a short sale?
“It sounds strange for banks to be offering a big cash bonus as well as agreeing to write off the mortgage,” Cormier states. “Chances are, the banks just don't want to be dealing with the time and money it costs to have any more foreclosures in court.”
For more information, contact Marc Cormier at cormier64(at)gmail(dot)com, call (703) 564-4026 or visit http://www.Help34.com.