Yesterday I attended a short sale seminar that was put on by a local attorney who specializes in negotiating short sales. I've been working on short sales for quite some time now, but I do like to attend these types of things as a refresher every once in a while. One of the most important things that he pointed out was that the original loan amount doesn't really matter to the lenders; what lenders care about is today's market value and what they would net in a foreclosure versus what they would net with a short sale.
This wasn't new information, but I was glad to hear it again, because in some of the areas that I currently work in, prices have declined considerably. I have weekly update calls with all of my sellers, during which we discuss my marketing efforts, changes in the market, and the price of their home. It often disturbs sellers that they have their home for sale for 25% or more below what they owe. I always reassure them that this is where the market is today, and that we will have a compelling case once we are ready to start dealing with their lender. I guess it is just nice to hear the same message from another local real estate professional.
Joseph Cacciapaglia, MLERE
Realtor Associate®
R&I Realty
15 Potter Street
Haddonfield, NJ 08033
Office: 856.795.3111 x268
Cell: 979.218.2286
Jcacci1@gmail.com
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