Homeowners of America Opting for Short Sale Plans to Sell their Homes Fast, Avoid Eviction, and get a Bank Payout. Short sales have become the easiest way for homeowners who are facing difficulty in paying their mortgages on time to sell their house fast. It gives them the much needed opportunity to sell their house for more than the amount remaining mortgage amount and settle their mortgage debt quickly. Homeowners can avoid foreclosures by opting for a short sale. This also allows them to escape eviction.
In the years 2003-2006, property buyers could easily acquire mortgage loans by getting approval on the basis of their application. Buyers were only expected to state their income unlike today when a home buyer is expected to submit proof of income to get the loan sanctioned. Therefore, at a time when acquiring a mortgage loan is so difficult, it is advisable that home owners consider the short sale option if a loan modification to keep the home doesn’t quite work for them. A short sale looks a lot better on your credit report than a deed in lieu of foreclosure or bankruptcy.
Homeowners can now rely on a Bank of America home short sale plan and sell their house for the right price. Bank of America is providing as much as $30,000 as part of their short sale plan to homeowners who are struggling to pay their mortgage payments. This will give home owners an opportunity to sell their house in case they intend to avoid foreclosure. It is not necessary for homeowners to be a short sale expert in order to make the most of the plan as Bank of America’s plan will provide homeowners with relocation amount ranging between $2,500 and $30,000. This amount will be available for only those home owners who sell their house in a short sale. The Bank of America first tested this plan in Florida and found that it yields impressive results and more and more homeowners who were struggling to make on time mortgage payments opted for the plan. The bank paid as much as $20,000 to mortgage borrowers who disposed off their houses via short sale plans.
On the other hand, even the Chase short sale department rolled out an initiative in the year 2010. This initiative was similar to Bank of America’s short sale plan and pays around $35,000 to short sellers. Wells Fargo borrowers seem to be getting similar sums for choosing short sales.
Bank of America has already approved short sales of around 200,000 and completed them in the last two years as well. These sales have also been more affordable for banks as compared to foreclosures. By simply escaping foreclosures, the lenders acquire properties back from borrowers who are struggling to make mortgage payments more quickly. This further allows them to avoid maintenance related expenses, property tax payments as well as legal fees even as foreclosure process is on. As per Realty Trac, during the last 3 months of the year 2011, foreclosures were sold for an average amount of around $150,000, whereas short sales were sold for an amount averaging around $185,000.
In order to qualify for the short sale plan, borrowers will have to acquire pre-approval on their home sales price. In addition to this, the sale must begin by 2012 end and should be closed by 26th September 2013. Therefore, homeowners should only deal with those buyers who are 100% interested in purchasing your house.
As a result, approximately 42% of all the San Diego homes for sale in the resale segment are currently short sales and foreclosures. Thinking about buying or selling a home or condo? Please make sure you give us a call. Brian Stephens, Real Estate expert 858-240-2102.