To meet the terms of the $26 billion mortgage settlement, the nation’s five largest banks are becoming more agreeable to short sales, Inman News reports.
The five banks -- Bank of America, Citi, JPMorgan Chase, Ally Financial, and Wells Fargo -- have issued most of their relief from the settlement so far in the form of short sales or deeds in lieu of foreclosure.
Under the settlement, the five banks are required to provide $17 billion in aid to home owners, either through loan modifications, principal reductions, or short sales.
To date, 74,614 home owners have received an average of $116,200 each as either a short sale or deed in lieu of foreclosure.
Since January, sales of homes in the pre-foreclosure process -- usually taking the form as short sales -- have been rising. In fact, they reached a three-year high in the first quarter, RealtyTrac reports. Meanwhile, the number of foreclosure sales has been declining.
Besides short sales and deed in lieu of foreclosure, mortgage servicers are also increasingly offering first-lien loan modifications to struggling home owners. According to a progress report on the settlement, 7,093 borrowers received first-lien loan modifications, averaging about $105,650 per borrower.
Source: “Banks Using Short Sales to Meet Robo-signing Obligations,” Inman News (Sept. 4, 2012)