Avoid Foreclosure with a Short Sale

The alarming statistics on homeowners struggling to make payments on mortgages they cannot afford and homes they can't sell is depressing but one bit of hope is available. The ABI Bankruptcy Brief reports: “Accelerating efforts to move troubled mortgages off their books, banks are offering as much as $35,000 or more in cash to delinquent homeowners to sell their properties for less than they owe, Bloomberg News reported today. Lenders have previously delayed or blocked short sales, but banks have now decided that the deals are faster and less costly than foreclosures. Banks are nudging potential sellers by pre-approving deals, streamlining the closing process, forgoing their right to pursue unpaid debt and in some cases providing large cash incentives." If you are in this situation or know someone who is, pass along this info.