Banks have discovered that it is better to give than to receive. Receiving a home through foreclosure has
proven expensive for the lender. According
to Freddie Mac, an average foreclosure costs a bank $60,000. Instead, bottom-line sensitive institutions are
giving cash incentives to encourage
homeowners to cooperate with a short sale.
A short sale is a sale in which the bank agrees to let a house sell for
less than the amount of their outstanding loan.
- Bank of America is offering 5k-30k
- Chase is offering 10k-55k on their older WAMU products.
- Wachovia and Wells Fargo Financial: 5-15k
In addition, the Home Affordable ForeclosureAlternatives (HAFA) program provides $3,000 in relocation assistance at the
close of an FHA short sale.
Don’t Sell Yourself Short
The summer market has been sizzling and one surprising beneficiary
has been sellers who had assumed they were in for a short sale. Some recently listed “short sales” have
received multiple offers. Through the miracle
of competition, the price has been driven up enough in some instances to bridge
the loan gap and turn the short sale into a traditional sale. This is great news for sellers’ resulting
credit. Don’t assume your house is
underwater. The tides are turning.
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