Banks Paying as Much as $35,000 Cash to Homeowners in Short Sales; Why and How Many?

In a short sale, banks forgive the difference between what is owed and the sale price of the house. Recently, however, banks have started giving cash back to the sellers. So far, the programs are a drop in the bucket. There are millions of pent-up foreclosures and JP Morgan is doing 5,000 short sales a month, hardly enough to make a dent.

Still, "short sales represented 9 percent of all U.S. residential transactions in November, the most recent month for which data is available, up from 2 percent in January 2008, according to Corelogic."

What's Really Going on Here?

If the answer is "it's faster, quicker, cheaper" than foreclosures, then why don't we see more of them, lots more of them?

Could it be these are the real problem loans with clouded titles, questionable practices by lenders, or huge numbers of written complaints by borrowers? Add to that a dearth of willing new borrowers and I think you have the answer

http://globaleconomicanalysis.blogspot.com/2012/02/banks-pay...