If you are a home owner considering a short sale, you may be wondering "why would the bank approve my short sale instead of foreclosing?" This is a common question among my Nashville Short sale clients. The fact of the matter is, statistically banks recoup more of their money with a short sale than they do with a foreclosure.
Make no mistake, banks do not approve short sales to help out sellers or because they are compassionate towards your financial hardship. They are in business to make money and they will do whatever they think will recover the largest percentage of the unpaid mortgage balance. If that happens to be foreclosure, they will proceed with the foreclosure.
A short sale expert can generally prevent a foreclosure from happening, because in most cases it is more profitable to approve a short sale. In a foreclosure situation, the bank incurs higher legal expenses. They also have to maintain the property and pay the bills (i.e. property taxes, utility bills, HOA association fees if applicable) during the time the bank owns the home. Why would they take on this hassle if they can sell the home at fair market value by approving a short sale and forgo all the additional expenses?
It is the job of a qualified short sale Realtor to convince the bank that the offer being presented is the best the bank can expect in the current market. The agent must also prove to the bank that if they don't accept the short sale, the only other option is foreclosure. I have seen different research that suggests that banks recoup as much as 30%-40% less on a foreclosure than on a short sale.
If you are considering buying or selling a Nashville home via short sale, contact a short sale specialist to greatly increase your chances of avoiding foreclosure. I successfully close over 90% of my short sale listings. If you need help or have more questions about Nashville and Middle Tennessee short sales, call or e-mail me today!
Aaron Armstrong, Short Sale Specialist
615.545.8676 / aaron@armstrongrealestategroup.com
For more general info about the Nashville short sale process, visit us online: www.Avoid4ClosureTN.com
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