With the real estate market currently in the tank (as compared to several years ago), banks are scrabbling to find ways to preserve as much of the profits out of their mortgage holdings as possible. And the average home owner is seeing declining values, as well as potentially losing their job or having to take salary cuts.
It’s pretty much a no win situation for the home owner, however the banks “seem” to be trying to help the mortgage holders out, by offering them an incentive for doing a short sale. The problem with this is, they may not be providing the necessary fine print in their marketing, and consequently, most average home owners with no real estate knowledge could get taken advantage of.
Take a look at the following post providing more details on this subject.