Incentives for Short Sales

In an effort to aid struggling homeowners avoid foreclosure, JPMorgan Chase & Co and Wells Fargo & Co., are offering short-sale incentives to qualified homeowners.  They aren't releasing many of the details; however the buzz throughout Florida is that defaulting homeowners have received between $10,000 and $20,000 from the banks upon agreement of a short sale.

According to the Florida Sun-Sentinel, the banks aren't explaining what criteria needs to met to receive the incentives or why only certain homeowners are being chosen, they are only saying that it is determined by "individual circumstances". However, Tom Goyda, Spokesman for Wells Fargo stated that they are offering these incentives to homeowners across the nation "where the foreclosure process is lengthening."

Considering that the average foreclosure in Florida took 619 days during the first quarter of 2011, according to RealtyTrac, Inc., the incentives may not be a bad idea.