If you are a Jacksonville Foreclosure Defense Attorney, you know all to well the pleas from homeowners facing foreclosure. One plea heard over and over again from just about every homeowner facing foreclosure who walks through your door is that they could not get anywhere with their lender. Uncountable phone calls were made and financial packets sent with nothing to show for it. Lenders have been simply unwilling to work with homeowners to either obtain a modification or a Short Sale. Rather, it has seemed that lenders have preferred to obtain title to the property through foreclosure in the Florida courts. A recent report states that lenders may be beginning to see the cost benefit of allowing homeowners to Short Sale their home rather than go through the long and costly process of foreclosure in Florida. Click here to read the full article on Bloomberg.
But what has changed all of a sudden? For starters, it's cheaper to allow a homeowner to Short Sale! The foreclosure process can take a few years to complete. Meaning the lender must keep all taxes and insurance current, maintain the property, pay legal fees, and all other costs required to maintain and protect the property. A Short Sale is generally completed in a lot less time making it a lot less expensive. Lenders loose 15% less through Short Sale than through a foreclosure.
While not typical, one homeowner was offered $30,000 on top of being able to Short Sale her property for about $200,000 less that what she owed on the mortgage. This is not the only case of a lender offering money to a homeowner to find a willing buyer to Short Sale. Lenders now seem to be increasing their efforts to clear defaulted mortgages from their inventory. Some are offering as much as $35,000 or more to persuade homeowners to obtain Short Sales. Other incentives include pre-approving Short Sales, streamlining the Short Sale process, and relinquishing rights of deficiencies.
Obtaining a Short Sale is one way of dealing with foreclosure and being unable to afford your monthly mortgage payment. With the new incentives and new views of Short Sales by lenders, you may want to try to speak with your lender again about a Short Sale even if attempts have been unsuccessful in the past. Depending on your goals and financial situation, their may be another option that better suits you. Contact a Jacksonville Foreclosure Defense Attorney to discuss your situation.
