Saturday, August 20, 2011
Banks Increasing Incentives for Short Sales
NJ Realtors are beginning to notice that banks are more willing than ever to expedite the short sale process. They've naturally tended to avoid working with underwater sellers since their mortgage holders were so often understaffed and uncooperative in responding to buyer's offers.
A short sale is a home that’s priced below the seller’s mortgage balance, because the balance exceeds its current market value. Banks agree to short sales because the next best alternative is often foreclosure, which will cost them even more. With local foreclosures suspended for nearly a year because of the "robo-signing" fiasco, short sales have come to dominate the market.
They've come to realize that increasing their staffing and speeding up the extra paperwork involved, saves them money in the long run.