New incentives are in the works nationwide for promoting short sales in order to avoid more foreclosures than necessary. The plan is meant to prod lenders into allowing more short sales.
Currently short sales are frequently avoided by lenders because offers are seen as too far below the last appraised value of the property, even though the foreclosed upon sales price in the end may be even lower. The incentives that are being mulled over are expected to pass soon.
The plan is to give the lender $1,000 for allowing a short sale to occur and the buyer a $1,500 credit at closing. The plan is expected to be passed by the treasury as a way to keep properties selling. Short sales are seen as a way to help the home owners nationwide avoid a credit hit as well as to take a house off the lender's books before the house becomes officially a foreclosure.
The new incentives are supposed to help avoid a foreclosure rate increase.
Gina McKinley, a Phoenix real estate agent, can help you understand how to use this new incentive to your advantage when purchasing Phoenix AZ real estate. Gina McKinley can be reached at (480) 355-8645 or by email.