Short Sale Incentives ~ Why the banks will give you cash to sell the home you can’t afford

If you are an Austin, Texas 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, Austin 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 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. Other smaller banks also have incentives, and there are even government programs (like HAFA and HAMP) that allow you to do a short sale and receive an incentive. The amount you receive depends on the value of your home and other determinations made by the bank, but today it is not uncommon for homeowners to receive thousands (or even tens of thousands!) of dollars, all while selling their home and avoiding foreclosure in a way that protects their future.

The bottom line for Austin homeowners in danger of losing their home is that you have options! Contact us today and schedule your free, confidential consultation.