About 84 percent of Florida foreclosures are more than 18 months in arrears.
In January 2010, just 19 percent of Florida’s foreclosures were 24 months or more delinquent.
A new report from Jacksonville-based LPS Applied Analytics found that as of September, 56 percent of Florida’s mortgages in foreclosure are 24 months or more behind in payments, compared with 39 percent nationwide.
With those stats in mind, banks are trying another option to save time and money, with an incentive, program for defaulting homeowners to "short sale" their homes instead of enduring a foreclosure, which can take years.
Last month, Bank of America quietly began a Florida-only campaign that gives homeowners up to $20,000 for a short sale rather than letting their homes linger.
Wells Fargo and J.P. Morgan Chase have similar short-sale incentive programs, sometimes called “cash for keys.” Jack McCabe (chief executive of McCabe Research & Consulting in Deerfield Beach) said a woman he knows was told by Chase they would give her $35,000 for a short sale after she was only 60 days behind on payments.
Considering recent figures that estimate, the time from initial foreclosure filing to auction at 676 days in Florida, the greater the loss for the banks holding the loan. The longer the homes are out there and the borrower isn’t paying, the more properties will tend to deteriorate leaving the banks having to make a decision to repair the property, to sale at a fair market price or leave it untouched and sale dirt cheap…which will just add more to the banks losses.
From the banks perspective it is a wise choice to offer the owner to execute a short sale for an monetary incentive… Then to take the very long dragged out process of foreclosures in Florida…
It tells me that the banks have caught on and realized it is to their advantage to do a short sale…
If you are a struggling homeowner and would like to have a confidential discussion about your situation or would like to Short Sale your home feel free to contact me.
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