In an interesting twist, banks are offering delinquent homeowners as much as $35,000 or more in cash to sell their properties for less than they owe. Lenders have routinely delayed or blocked such transactions, known as short sales, in which they accept less from a buyer than the seller’s outstanding loan. With the foreclosure system being bogged down by the number of cases, banks have decided the deals are faster and less costly than foreclosures.
For banks, approving a sale for less than is owed on the home can cut a year or more off the time it takes to sell a property. From listing to sale, the transactions took about 123 days on average at the end of last year, according to the Campbell/Inside Mortgage Finance Housing Pulse Tracking Survey.
Some of the banks that are extending this opportunity to struggling homeowners include: Bank of America, which sent letters to 20,000 Florida homeowners as part of a pilot program, offering incentives of as much as $20,000, or 5 percent of the unpaid loan balance; Wells Fargo, which offers relocation assistance of as much as $20,000 for borrowers who complete short sales or agree to transfer title through a deed in lieu of foreclosure “in certain states with extended foreclosure timelines, including Florida; and Citigroup, which offers $3,000 to most borrowers who qualify for its program.
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Choosing the right attorney can make the difference between whether or not you can keep your home. A well qualified attorney will not only help you keep your home, but they will be able to negotiate a loan that has payments you can afford. Foreclosure defense attorney, Timothy Kingcade has helped many facing foreclosure alleviate their stress by letting them stay in their homes for at least another year, allowing them to re-organize their lives. If you have any questions on the topic of foreclosure please feel free to contact me at (305) 285-9100. You can also find useful consumer information on the Kingcade & Garcia, P.A. website at www.miamibankruptcy.com.