Chase is offering short sales to delinquent Florida homeowners. Short sale is an option for homeowners who are behind on their mortgage and do not foresee themselves being able to make the payments in the near future. If you have been unemployed for an extended period of time or if you are now making far less than you were when you purchased your home, a short sale may be an option for you. A short sale will allow you to get out from under a mortgage you can no longer afford while protecting your credit as much as possible. And banking giant JP Morgan Chase has decided to sweeten the short sale process. They have decided to offer ten to twenty thousand dollars to owners who will agree to a short sale in addition to forgiving the remaining balance of the loan.

Banks never make any offers that they do not profit from, so what does JP Morgan get out of the deal? Actually, quite a bit. Florida foreclosures are notorious for taking an extended amount of time, sometimes as much as 2 years. Following the robo signing scandal last year, that process could get even longer. During the foreclosure process, the bank is not getting any payments on the mortgage. By getting homeowners to accept a short sale, the bank is avoiding having to pay fees for maintenance and property taxes on a home that could take years after the foreclosure to sell. In addition, the bank clears its financial records of bad mortgages quicker.

A JP Morgan spokesperson insists the move is intended to benefit the banks and homeowners, but would not give specific qualification requirements for the programs. Florida real estate brokers report that the offer is only extended to homeowners who live in areas with more sales and whose homes were building more recently. JP Morgan is also responding to short sale offers much more quickly than many other lenders, who sometimes take 60 to 90 days. The wait period causes many short sales to fall through as prospective buyers move on to other properties. JP Morgan is attempting to shorten that time in order to insure more short sales move forward. This step is a bold move by one of the larger mortgage holding companies in the United States.

If your family is underwater on your home mortgage and believe that a short sale might benefit you, contact a Miami foreclosure lawyer who can assess your situation. A short sale does still reflect poorly on your credit score, but is not as negative as a foreclosure. Every homeowner's situation will be different, and only a Miami foreclosure lawyer can help you make the best decision for you. Call a Miami foreclosure lawyer for a consultation before you make a final decision.

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Chase offers mortgage holders a way out, by Mark Puente, April 30th 2011