FORT LAUDERDALE, Fla. – June 29, 2011 – Two lending giants are reportedly offering homeowners who are behind on their mortgage a cash reward to agree to a short sale in Florida.
JPMorgan Chase & Co. and Wells Fargo & Co. aren’t releasing many details about the short-sale incentives, but defaulting homeowners in Florida have confirmed that they’ve received anywhere from $10,000 to $20,000 from the banks in order to agree to a short sale.
To help homeowners avoid foreclosure, banks have offered a “cash for keys” program, offering money in exchange for surrendering the home, but banks offering incentives for a short sale would be new, industry insiders say. Usually the perception is that banks agree to do a short-sale transaction as almost a favor for homeowners, experts note.
The banks won’t say why only some homeowners are being chosen to receive the cash incentives, nor its criteria for choosing who gets the reward, only saying it’s determined by “individual circumstances,” according to the Florida Sun-Sentinel.
The short-sale incentives are a way for the two banks to write off the bad loans as soon as possible and avoid the lengthy process of foreclosure, experts say.
Wells Fargo says it offers the cash incentives to homeowners in Florida and other states "where the foreclosure process is lengthening," spokesman Tom Goyda told the Florida Sun-Sentinel.
In the first three months of 2011, the average foreclosure in Florida took 619 days, according to RealtyTrac Inc.
Source: “Chase Borrowers Getting Cash to Complete Short Sales,” South Florida Sun-Sentinel (June 27, 2011)
© Copyright 2011 INFORMATION, INC. Bethesda, MD (301) 215-4688
No comments:
Post a Comment