More lenders are offering short sale opportunities, according to new data from RealtyTrac.
South Florida short sales are way up, as the number of foreclosure filings continues to increase. RealtyTrac now has Florida ranked #2 in the nation in terms of filings, but many lenders are avoiding the lengthy foreclosure process by turning to short sales, meaning they are agreeing to sell a home for less than what the homeowner owes on the mortgage. The number of these short sales have risen 18% from January to March 2011 to the first quarter of 2012. The Palm Beach Post reports it takes an average of more than two years to foreclose on a home in Florida, and banks are reluctant to wait that long. While borrowers generally lose everything they've put into their homes, they avoid having a foreclosure on their credit.
If You Need It
Bank of America announced this month it is expanding its "short sale relocation program" nationwide and increasing the maximum amount a seller can receive from $20,000 to $30,000. To qualify for the payment, a seller must get an approved price from the lender before submitting a contract. The sale must be initiated by the end of this year and close by Sept. 26, 2013.