Recently REALTOR MAG. published an article stating “Banks to Offer More Cash Incentives for Short Sales”. In fact, some banks are offering struggling home owners up to $35,000.00 to short sell their home and get it off their books, according to CNN Money.
Home owners are surprised at the banks’ willingness to approve a short sale. Here are some reason why:
The article also reported that the banks are forever changing their minds about what they will do. One day they say yes, the next day they no to short sales.
As far as all banks are concerned, short sales are a smarter option than letting the home fall into foreclosure. Actually banks had rather modify a loan than do anything else, but if that can’t work, a short sale is better than the foreclosure. With the foreclosure, homeowners stop making the mortgage payments, property tax payments and maintenance. These foreclosed homes usually sell for at least 22% less than a home sold not in distress. A Short Sale usually results in a bank loss of about 14% in relation to a non-distressed sale. These figures are national averages showing advantages of 8% for short sale vs foreclosure. Values in one specific area may be more or less than these national averages. Also, foreclosure sales usually require an average of $20,000.00 to make then ready to live in while short sales usually require much less because the owners are still residing in the home until it is sold short.
Need to make a short sale? Need to purchase a short sale? Just give Earl Park a call at: 770-377-5793 or email me: EARL@EARLPARK.NET