A seller in Illinois sold his home for 210,000. that appraised for $500,000 at the height of the market. After a divorce and losing his job foreclosure was inevitable. After the deal was finalized, Chase sent him a check for $20,000. It was incentive that the bank offered if he sold in a short sale instead of going through a foreclosure.
This type of incentive may not apply to you, but It may be worth checking into.
“Short sales are sometimes referred to as a kinder, gentler foreclosure,” Fleming said. “Borrowers never get evicted, you never have the vacancy issue for the home, so it’s good for the market around it.”
Short sales also typically sell at less of a discount than foreclosures, and many say that a short sale is much less damaging to a homeowner’s credit than a foreclosure.
The long wait
But often a short sale can’t be completed in a snap. “In general, it is a totally different type of transaction. You’re not only selling a house, you’re negotiating debt,” said Mike Cuevas, a real-estate agent at Exit Realty in Chicago.
A short sale consultation may worth checking into before you decide to throw in the towel.