Since the beginning of the foreclosure crisis, millions of homeowners have found themselves pinned in by their financial circumstances and chained to a mortgage in which they owe more than their home is worth. In the past, homeowners enduring these challenges had very few options, and most of them would either be forced to sell their home or lose it to foreclosure.

Today, however, there are more options. The government and banks have created a multitude of programs and foreclosure alternatives that can help people in these circumstances find a dignified solution for their problems without crippling their financial future. These options include loan modifications, refinancing, or short sales.

But what really makes today a unique time for distressed homeowners is one simple fact: Banks are now willing to give them cash to sell the home they can’t afford.

You may be asking yourself: “Why would the bank be willing to pay them money?” and “How much money will they pay?”

“Why would the bank be willing to pay them money?”

This one is really simple. For banks, it’s all about arithmetic. In a foreclosure, banks take the home (or condo) from the owner and then sell it at auction. The banks get to keep the money they make at auction, but they also have to pay money on upkeep of the vacant property & expenses related to the sale.

For other options, like a short sale, the bank is not responsible for selling or maintaining the house because it is still owned by the original homeowner and it is the home or condo owner’s responsibility to find a buyer. In almost every case, the final sale amount in a short sale is greater than the sale amount at a foreclosure auction.

Because of this simple fact, short sales have become the preferred foreclosure alternative for banks. This is why they are willing to offer the homeowner cash to short sale their home: even with a cash incentive, the bank still recovers more money in the long run & the homeowner can walk away from their financial situation with some cash.

“How much money will they pay?”

This varies from bank to bank, but the amounts can be surprising and almost every major lender has some sort of incentive. For instance:


Other smaller banks also have incentives, and there are even government programs that offer short sale incentives. The amount they pay depends on the value of the property and other factors, but today it is not uncommon for homeowners to receive thousands (or even 10s of thousands!) of dollars, while selling their home & avoiding foreclosure.

The bottom line for homeowners in danger of losing their home is that they have options! As a Certified Distressed Property Expert (CDPE), I am uniquely qualified to talk to them about their options, to guide them through the process, help them take advantage of the incentives that are available, and to help them save their home from foreclosure.

If you or someone you know would want to know if you qualify for one of these programs, call me now for a free consultation.