Last month Chase Bank paid two of our clients a total of $55,000 in cash incentives to do short sales. May 10, one of our clients received a $25,000 short sale cash incentive, and May 29 another client of ours received a $30,000 short sale cash incentive.
Chase Bank offers these incentives to struggling home owners who can no longer afford their mortgages to do a short sale rather than letting the homes fall into foreclosure. More banks are realizing that this is a better solution for everyone involved.Do You Qualify?
For example, recently Bank of America announced a new program that offers struggling homeowners between $2,500 and $30,000 if they sell their home through a short sale. Last month we negotiated a large cash incentive with Bank of America for $10,000 for one of our clients to do a short sale. (The amount of the incentive depends on several factors depending on the home.) Now Chase is starting to offer more of these large cash incentives to distressed home owners.
We have had large short sale cash incentives from Chase bank before. Last November, along with Dorner Law we negotiated a $35,000 payment from Chase Bank for our client. We’ve done many more large short sale cash incentives for our clients, but this makes two large incentives from Chase Bank in just one month. Big banks like Chase are ramping up their efforts to offer more incentives like these to distressed homeowners to do short sales to avoid going through a costly foreclosure process.
Why Do Banks Offer Short Sale Incentives?
Offering cash incentives makes much more sense financially for banks than going through with a foreclosure. Foreclosures are costly and time consuming for banks. Banks aren’t in the business of owning and maintaining properties. Every month home owners don’t pay their mortgage bank lose money, and the home may even lose value during this time. So in the end, a cash incentive—even large incentives like the two Chase offered this week—costs less for banks than starting the foreclosure process on the property.
29 percent of the short sales we have closed received some kind of cash incentive so far this year. The average cash incentive for our short sale clients is $2,932.05. We also work with the bank to get the deficiency balance on the mortgage forgiven. Having the debt forgiven and having cash at closing to relocate to more affordable housing is a much better option for struggling homeowners than letting the home go into foreclosure.Do You Qualify?