Banks would rather short sale your home than take it back in foreclosure - 2012-2013
Over the past two to three years (2009-2012) the major banks have drastically changed their position on foreclosing on a home. Banks are all about profitability. They are public firms, traded on the major stock exchanges, and their charter is to make as much profit as they can.
Due to the overwhelming number of foreclosures to hit their systems the banks have finally figured out that it is much more profitable for them to have underwater sellers short sale their homes, rather than the bank to take them back in foreclosure. They do this not because they are nice guys .... they are doing this because it is more profitable for the bank. Here is most recent link.
To illustrate this point, here is more info on what the major banks are presently doing to encourage homeowners to short sale rather than let their home go to foreclosure.
1. HAFA short sales. Banks routinely pay the homeowner anywhere from $3,000-$5,000 to short sale their home.
2. Some of the major banks, including Wells Fargo and Chase have paid homeowners as much as $20,000 to $40,000 to short sale their homes in 2012.
http://money.cnn.com/2012/02/10/real_estate/short_sale_incentives/index.htm
In addition banks like B of A, as of 2012, now offer a short sale called the cooperative short sale, where in some cases the homeowner does not have to submit financials or show that they have a financial hardship in order to short sale their homes.
For more info you can contact Tom at 925-216-1105 or email him at realestate@tomlyons.com
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