More lenders are offering short sale opportunities, according to new data from RealtyTrac.
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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.
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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.
