Chase Offers More Reason to Choose a Short Sale

One of the financial giants, JP Morgan Chase has an offer to distressed homeowners they cannot resist. If you are one of these unfortunate homeowners, all you need to do is to agree to a short sale and in exchange, you will be given as much as $20,000. Not only this; but the difference between the sale and the mortgage owed to them will be forgiven. The promised cash will be released after the sale.

Chase has decided to offer such incentive after realizing that foreclosing a property will cost them more in the long run. In Florida, the entire foreclosure process can take as long as two years and Chase would have to spend money on court and attorney costs as well as maintenance of the repo home such as property taxes. By offering this incentive, they will also manage to remove these bad loans from their books.

Obviously, the homeowners and their short sale Realtor will benefit most from this incentive. There is still the matter of the taxes on the amount forgiven since it will be considered as income. Still, compared to a foreclosure, this deal is generally better.

Another reason for homeowners and their short sale Realtors to grab this offer is the fact Chase is willing to provide a reply to the proposal within 40 days. Typically, short sales could take as long as nine months before it sees daylight.

Since 2009, the financial giant has closed over 100,000 short sale transactions and is working hard to approve more as well as cut down the processing period. Florida is currently overwhelmed with the 300,000 foreclosures in its inventory of homes for sale and many more homes are on the verge of default. Clearly, this incentive is a heaven-sent and should be taken advantage of if you are serious about avoiding foreclosure.

Refrence: http://www.tampabay.com/news/business/realestate/chase-offers-mortgage-holders-a-way-out/1166880