JP MORGAN CHASE OFFERS SHORT SALE INCENTIVES?

Broward and  Palm Beach County Foreclosures, short-sales and bank repossessed homes

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  Chase, Wells Fargo offer borrowers $10,000-$20,000 for short sale closings

  June 27, 2011

  ...payments $10,000 to $20,000 if they?ll agree to a short sale, which means they sell the home for less than they owe...re doing homeowners a favor simply by agreeing to a short sale and forgiving the amount they owe. 

The Sun Sentinel is reporting that JP Morgan Chase is offering up to $20,000.00 to some Florida homeowners as an incentive to induce them into agreeing to short sale their properties. On the face of it this looks like progress an innovation from a company that is not known for either.

Chase as well as  all of the other major lenders is experiencing long judicial delays in Florida before obtaining a foreclosure judgment and sale date.  These delays often allow homeowners to live in their properties rent free for up to two or more years. Before we indite the Florida courts it is the shear volume of foreclosures that creates this scenario. Chase figures why not induce a financially distressed homeowner in default into voluntarily selling their home.

On the face of it this seems logical.  But their are several underlying problems with this approach. First, if their are condo dues they must be paid prior to the short sale, or negotiated with the condo association's lawyer. This is in stark contrast to the lenders obligation post foreclosure which is limited to one percent of the original mortgage balance, plus maintenance assessments. So buyer and seller be ware of the lurking condo association dues.

Of course the program is not being offered to all defaulting Chase homeowners. However, it doesn't take a vivid imagination to see how a upside down homeowner, who could otherwise afford to pay their mortgage, might take advantage of this program.

Short sales are complicated and homeowners and investors considering the sale or purchase of these properties should consult a experienced short sale negotiator in order to facilitate the approval of their sale.