Over the last few months, several things have been taking place. First, banks are continuing to debate over the foreclosure settlement, as the country hopes to hold banks accountable for robo-signing and other practices that lead to the real estate market crash and thereby the foreclosure crisis. Second, banks are offering a variety of incentives to help increase the number of new home loan or refinancing applications, which remain very low considering the record-low interest rates. Third, there is a continuous push for short sales as opposed to foreclosures, something that now even the banks are encouraging.
With the incredibly high number of foreclosures across the country, it is not surprising to see banks like Bank of America stepping in and encouraging foreclosure in states that utilize a judicial foreclosure process. Which state is one of the first targets? Florida.
Although there are many people throughout Florida seeking to stop foreclosure, the foreclosure process takes ages due to judicial foreclosure. In an effort to speed things along, Bank of America is offering a variety of incentives to encourage homeowners to consider a short sale instead of a foreclosure.
But just how much is Bank of America willing to pay buyers considering a short sale? Up to $20,000!
In order to be considered for the incentive, homeowners must submit their request by November 30 and the house must sell before the end of August in 2012.
It will be interesting to see how many homeowners jump at this opportunity and decide to undergo a short sale of their property as opposed to fighting the judicial foreclosure process. Although the delayed foreclosure processes in Florida can help homeowners remain in their home for a longer period of time, the inevitable will eventually occur and their home will be foreclosed upon. Therefore, it may be smart for homeowners facing foreclosure to seriously consider the incentives being put forth by Bank of America. However, as always, make sure to read the fine print before signing on the dotted line.
In regards to Bank of America encouraging a short sale, there is definitely no question that a short sale may be much better for the bank in the long run as opposed to waiting for foreclosure to occur. First and foremost, short sales can happen a lot quicker than the Florida foreclosure process. Second, the delayed foreclosure system in Florida only prolongs the suffering of banks; therefore, Bank of America is probably making a smart move with their new incentive.
If you are facing foreclosure in Florida, then it may be worth your time to consider the short sale incentive being brought forth by Bank of America. Who knows? A short sale may be your best option in the long run.