$20,000 Short Sale Incentive offered by B of A
Bank of America is now offering homeowners located in states with high foreclosure activity up to $20,000 at closing (yes, $20,000) to sell their home as a short sale rather than allowing the home linger within the foreclosure proceedings.
Short sales which qualify for the cash at closing much be submitted for approval to Bank of America prior to November 30, 2011. The closing must occur prior to August 31, 2012 and the home must not have any offers submitted on it currently.
As most know, a short sale is when the bank or lien holder accepts an offer to purchase for less than what is owed against the home.
The Bank of America strategy which has a minimum “cash at closing” payout of $5,000 is a true incentive to homeowners struggling to make their payment and on the brink of losing their home to foreclosure.
The national average timeline for foreclosure proceedings is 318 days. This said, B of A providing an incentive will help homeowners receive incentive to sell the home prior to it sitting vacant for months—if not years. Some call it a relocation fee yet it’s basically a “bribe” to make certain that the home owner leaves the home in good condition. Some would say that providing an incentive of 20K makes sense considering that the bank may need to pay $20,000 (or more) to fix the home up prior to selling. You see, in many circumstances the home owner which feels “cheated” by the bank will take /stead appliances, fixtures and intentionally damage the home.
Wells Fargo and Chase have similar programs for short sales which they call “cash for keys”. In fact, Wells Fargo offers up to $20,000 on eligible short sales which are left in tip-top condition. Although not advertised, these types of incentives are available w/in states with lengthy foreclosure durations.
In a nut shell, banks are now getting creative in order to get the distressed homes “off the books” and get back to a new normal.