To curb the rate of foreclosures, BofA is offering $25,000-30,000 of assistance in relocation fees if they are willing to complete the short sale instead of foreclosure. Why? Banks are seeing short sales as a money saving avenue than if a homeowner falls into foreclosure. The difference between the two processes is simple; short sales tend to give the bank ownership of the home more efficiently leaving the condition of the property optimal for a speedy turn around on the selling end with low fees. In addition, data reveals that short sales bring in more money than foreclosures in the long run.
With that information at hand, banks have started to put forth special offers for homeowners struggling to enter into either short sales or foreclosures. BofA ran a pilot program in Florida and JPMorgan Chase piloted a similar program with the same incentive.
"This program can help customers make a planned transition from ownership when home retention options have been exhausted or they have made a decision not to keep the home," says Bob Hora, a Bank of America executive.
Source: “Bank of America Offering up to $30,000 for Short Sales,” CNNMoney (May 15, 2012) andBank of America
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