Several of the nation’s largest lenders have announced monetary incentives for short sales utilized as an alternative to foreclosure. The incentives include streamlined procedures for some and more generous relocation offers for others.
In the case of Wells Fargo, “enhanced financial relocation assistance offers” may apply to certain borrowers who agree to a short sale or to a ‘deed-in-lieu,’ in which the deed is transferred back to the bank.
Incentives may be considered for first-lien loans owned by the lender that is offering the incentive. Such enhancements are becoming more common in states where the foreclosure process has become extremely lengthy and complex.
According to a DSNews.com account, Wells Fargo stated that relocation offers can be as much as $10,000 or $20,000. A Florida agent reportedly confirmed that Chase offered $20,000 to a borrower he represents.
The average incentive offered by Citi has been confirmed at $12,000 – provided that Citi owns the loan.
Bank of America has reportedly implemented procedural revisions designed to minimize ‘red tape’—saving time for agents who are attempting to complete short sales.
According to DSNews.com, JPMorgan Chase is offering a range of incentives to borrowers who agree to a pre-foreclosure sale “because if we can’t work out a modification, a short sale is a better result for the borrower, the servicer, the investor, and the neighborhood than a foreclosure.” In all cases, lenders indicate that incentive decisions are made on a case-by-case basis, depending upon a variety of circumstances.
Question: How will this trend influence distressed borrowers?
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