Banks pay homeowners to avoid foreclosures

Filed under: AM Roundup |

Banks, anxious to get troubled mortgages off their books, are offering homewoners as much as $35,000 to sell homes for less than they are worth, reports Bloomberg News.

Lenders have blocked the deals – known as short sales – in the past, but now have decided that are quicker and less costly than a foreclosure.

Banks are pre-approving sales, streamling the closing process and declining to go after unpaid debt in efforts to encourage the sales.

Read more at Bloomberg News.