Homeowners Getting Paid By Lenders to do Short Sales in Orlando

    More and more lenders are paying financially strapped homeowners as an incentive to do a short sale on their homes.  Short sales are when lenders allow borrowers to sell homes for less than their unpaid mortgages. They are in most cases the best alternative to foreclosure. Short sales have been increasing for months, but the financial incentives are becoming more common.
     Chase Bank 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 here in Florida to see if they should be expanded to more states. Wells Fargo's incentive offers range from less than $3,000 to $20,000.
     The truth is that Orlando Short sales, even with incentive payments to borrowers, can save lenders a lot of money compared with the expenses involved in completing foreclosures. Here in Florida where foreclosures go through the courts, 50% of loans in foreclosure are more than two years past due, according to research done from my past clients.
     It's a heck of a lot cheaper to shell out $10,000 or $20,000 to someone than it is to go through a long foreclosure. Banks are more willing to do short sales now than in the past. Cash incentives appear to be increasing over time. When a loan modification isn't possible, a short sale is usually a better and faster solution. Although lenders won't say how often they extend such incentives. Even if you have two sellers with similar situations, one might get it and another may not, It all seems to be very random. Typically, short sale incentives are more common for loans in states like Florida where foreclosures take more time.