Interesting little tidbit…
Daily Real Estate News  June 28,
2011  |  

‘Secret’ Short Sale Reward in Florida?

Two lending giants are reportedly offering
home owners 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 home owners 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 home owners 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 a the perception is that banks
agree to do a short-sale transaction as almost a favor for home owners, experts
note.

The banks won’t say why only some
home owners are being chosen to receive the cash incentives, nor its criteria
for choosing who gets it, 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 they offers the cash incentives to home owners 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)

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