Short Sales Incentives

Real Estate Agent with Realty One Group CA-BRE #01239269

$2,500 - $30,000 BOFA

$3,000 - $20,000 Wells

Up to $35,000 Chase

Up to $35,000 City


If you are a homeowner, there has never been a time quite

like today.

Since the beginning of the foreclosure crisis, millions of

homeowners have found themselves pinned in by their

financial circumstances and chained to a mortgage in

which they owe more than their home is worth. In the

past, homeowners enduring these challenges had very few

options, and most of them would either be forced to sell

their home or lose it to foreclosure.

Today, however, there are more options. The government

and the banks have created a multitude of programs and

foreclosure alternatives that can help people in these

circumstances find a dignified solution for their problems

without crippling their financial future. These options include

loan modifications, refinancing, or short sales.

But what really makes today a unique time for distressed

homeowners is one simple fact: Banks are now willing to give

you cash to sell the home that you can’t afford.

You may be asking yourself: “Why would the bank be willing

to pay me money?” and “How much money will they pay?”

Let’s take a closer look.

“Why would the bank be willing to

pay me money?”

This one is really simple. For the banks, it’s all

about arithmetic. In a foreclosure, banks take

the home from the homeowner and then sell it at

auction. The banks get to keep the money they

make at auction, but they also have to pay money

on upkeep of the vacant property and expenses

related to the sale.

For other options, like a short sale, the bank is not

responsible for selling or maintaining the house because

it is still owned by the original homeowner and it is the

homeowner’s responsibility to find a buyer for the home. In

almost every case, the final sale amount in a short sale is

greater than the sale amount at a foreclosure auction.

Because of this simple fact, short sales have become the

preferred foreclosure alternative for the banks. This is

why they are willing to offer the homeowner cash to short

sale their home: even with a cash incentive, the bank still

recovers more money in the long run and the homeowner is

able to walk away from their financial situation with some

cash in their pocket and the opportunity for a fresh start.

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