The Treasury Department plans to announce financial incentives for home owners and banks to pursue short sales instead of foreclosure. In a short sale, a home is sold for less than is owed on the mortgage.
Under the Treasury plan, which is expected to be announced this month, banks would get a $1,000 “success fee” when a short sale is completed.
But to me the big news is the home seller would receive up to $1,500 to assist with relocation expenses, similar to the “cash for keys” programs that various servicers offer.
I love this idea! Many home owners can really use this $1,500. And it gives an incentive to go for the short sale instead of just walking away and letting the home go to foreclosure. Combine this with the other benefits of doing a short sale, and it just makes to much sense to short sale.
Also see my post on myths and truths of short sales.
Jeremy Smiley
Realtor
Certified Short Sale Specialist
London Properties
(559)790-8760
www.JeremySmiley.com
