Boosting the housing market

The Watertown (N.Y.) Daily Times: Two years ago the Obama administration sought to stimulate the housing market by offering certain home-buyers an $8,000 tax credit. Now some banks are coming up with their own incentives to encourage sales with cash offers to eligible sellers rather than buyers.

With a huge inventory of foreclosed homes, banks, which have been under investigation for their practices, are trying to avoid further foreclosures through the use of short sales in which properties are sold for less than is owed on the mortgages. Last November, 9 percent of single family home sales were short sales, up from less than 7 percent in November 2010. Upfront cash helps make the deal.

JPMorgan Chase will give cash-strapped homeowners up to $35,000 with Wells Fargo offering incentives ranging from $3,000 to $20,000, if homeowners agree to a short sale to avoid lengthy and costly foreclosure, USA Today reported.