Florida banks offer deals to encourage short sales instead of foreclosures

Bank of America is testing Florida's foreclosure waters with an incentive program for defaulting homeowners to "short sell" their homes instead of enduring a foreclosure, which can take years. Almost unheard of five years ago, a short sale must be approved by the lender because the sale amount winds up being less than the mortgage owed on the house. Foreclosures have come to cost lenders so much in terms of sunken prices, deteriorated properties and legal fees that Bank of America announced last week that it would give $5,000 to $20,000 to qualified borrowers who submit a short-sale request to the lender by Nov. 30. A seller would be paid if the house is sold by Aug. 31, 2012. Guidelines for Bank of America's new Florida Enhanced Short Sale Relocation Assistance program state that a borrower may use the incentive to pay off existing liens or for relocation expenses. FHA, Ginnie Mae, VA and USDA loans are not eligible. Details are available

Pascal Schreier
Broker Associate
Pascal@OConnorRealty.info