In an attempt to cut their losses, banks are paying some snowed under homeowners upwards of $35,000 to sell their homes before they wind up in foreclosure.

These monetary incentives are geared toward homeowners who owe more than their home is worth and who have neglected necessary payments to sell their homes in a short sale. Deals such as these have been extremely rare in the past (since banks take a loss in short sales), but under certain conditions, it’s become a more appealing option than allowing the homeowner to fall into foreclosure.

For most banks, a modification is always Plan A, but if that’s impossible than a short sale is a quicker, more efficient solution. Over the years foreclosure has become an increasingly difficult and pricy option for banks, and many have found that homeowners are willing to drag out cases for years. And the longer a case drags, the pricier things get. Homeowners don’t just stop paying their mortgages—they cease payment on property taxes and let maintenance issues accumulate. Homes often experience significant deterioration during this period. By the time the home is in the bank’s possession, the home has experienced a startling drop in value. 

Another reason banks have become more flexible: Short sales fetch higher prices than foreclosures. According to the National Association of Realtors, by the end of 2011 foreclosed homes sold for an average of 22% less than conventional sales, while the discount for short sales was only 14%.