Short Sale Laws Assist Both Laurel MD Home Owners And The Bank
Some banks are in big trouble with the methods they have used to foreclose on delinquent loans. Well now major banks may be forced to let severely delinquent homeowners sell their houses for less than the loan amounts owed as part of a broad settlement of federal and state investigations into botched foreclosure paperwork.
For the distressed home owner this is great news. Since the ugly head of some banks’ unethical actions began to appear last fall, short sale approvals have skyrocketed. My personal research shows banks are much more willing to allow a short sale, forgive any deficiencies and allow relocation incentives to the home owners. This incentive has been up to $30,000 for some of my clients.
There are three basic reasons this is true:
The bank is no longer comfortable they will be able to receive clear title post foreclosure. A short sale is a title guaranteed sale with a grant deed. Good for both the bank, the seller and the potential purchaser.
Homeowners are receiving relocation incentives when the home is sold. The banks have been waiving most deficiencies from the sale of the property while not requiring a cash payment or a promissory note.
Previous bank culture considered a short sale a negative. Laws which force the action will remove the stigma and the banks will actually realize it is cheaper to short sale. Homeowners are seeing the big advantage of facilitating a short sale rather then allowing the property to go to foreclosure.