....only to mortgages Chase owns:
JP Morgan Chase has a deal for some homeowners behind on their payments: If they'll accept a quick sale of their home, the bank will give them $10,000 to $20,000 and forgive what it loses on the mortgage.
Homeowners get the cash after the home is purchased in a short sale, meaning the buyer pays less than what the bank is owed.
What's in it for Chase? By avoiding foreclosure, a process that can take nearly two years in Florida, the bank saves attorney fees, court costs and property taxes. And it speeds the process of getting bad loans off its books.
The bank began offering the incentive in late 2010.
"The net result is better for homeowners and investors," said Mary Kay Bean, a Chase spokeswoman.
Chase still suffers a loss in the process. But generally speaking, sale prices on foreclosure homes are lower than those on short-sale homes.
Bean declined to discuss the criteria used to select homes in the program. But Realtors said the homes are in more desirable locations and newer.
Chase's offer of cash to walk away from a home and forgiving the loan balance applies only to mortgages the banks owns.
Chase is also offering the cash payment to other homeowners whose mortgages it services. However, whether unpaid balances on these loans will be forgiven depends on the investors who own the mortgages.
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