Will my lender pay me to do a short sale? Real Estate for Santa Clarita VIDEO Update
Yes! there have been rumors for a while and even actual cases of this happening in Santa Clarita over the years. It has been happening more frequently across the U.S as the banks realize it is better to pay $10,000 or $20,000 to a homeowner than spend $50,000 and have a foreclosure drawn out over many years.
The incentive for the bank to pay a homeowner is more likely in states where the foreclosure process is long and drawn out. This trend is on the uptick, but it is still a very infrequent event. We have seen cases though here in Santa Clarita lately, and heard of others.
Short sales have been increasing for months, but the financial incentives — which Realtors say are random and infrequent — are a newer wrinkle.
•JPMorgan Chase went national with short-sale incentive offers last year, paying up to $35,000 in some cases.
•Bank of America is testing incentives from $5,000 to $25,000 in Florida to see if they should be expanded to more states. The Florida program began last fall, spokesman Richard Simon says.
•Wells Fargo‘s incentive offers range from less than $3,000 to $20,000, spokesman James Hines says.
Short sales, even with incentive payments to borrowers, can save lenders money compared with the expenses involved in completing foreclosures.
In states such as Florida where foreclosures go through the courts, 50% of loans in foreclosure are more than two years past due, says a January report by mortgage tracker LPS Applied Analytics.
Don’t forget the tax break being offered by the government that saves you from paying the taxes on the loss expires December 31st 2012!
If you have any questions feel free to let us know and if you would like a short sale consultation with Santa Clarita expert realtors please fill out the form below.
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