Eastlake CA – We throw around the statistic that a short sale reduces a lender's losses by 20% compared to a foreclosure. However, I am sure that there are many people who find that hard to believe. So today
I am going to give you a breakdown of exactly why it happens. Click here to discover how other sellers successfully did a short sale and avoided foreclosure.
I will use an real life example. A short sale was listed for sale for $425,000. After a few months, the sellers received an offer for $385,000. They submitted the short sale package to the lender. The lender didn't accept the short sale.
The home did not sell as a short sale. The lender started foreclosure proceedings and foreclosed on the home 19 months later. They put it on the market as a bank owned property. It sold for $230,000.
This is a real life example. We have lots of other similar examples. Short sale offers are turned down only to have the home sell for much less after foreclosure. Let's go thru the reasons this lender lost so much money.
First off, the real estate market was declining heavily at the time. Home values are still declining even today. So they lost $155,000 in home value decline. Probably half of that loss was because of the declining market.
The other half was because bank owned homes sell for less than owner occupied homes. Why? Because nothing is maintained. The yard isn't mowed, the house isn't kept clean, and no pride of ownership shows. Besides, the sales process for bank owned homes also hurts what they sell for. Last of all, buyers know the home is bank owned and make lowball offers because of it. They also lost interest income.
The home would have sold for $385,000 twenty-one months earlier (17 months foreclosure time plus 2 months to put the home on the market and 2 months to sell.) $385,000 lent at 4.5% interest earns $17,325 annually. Over 21 months that comes out to $30,318.75. Another big loss. Plus they had to pay property taxes the entire time the home was on the market. Annual property taxes are $6,521.08.
Over 21 months that comes out to $11,411.89. As you can see, the costs just keep on adding up. I'm sure I am missing other costs. Do you see how a short sale benefits a lender? Thinking about a short sale? I can help you short sale your property and never pay the bank another penny.
Send me an e-mail at firstname.lastname@example.org. I will contact you for a free consultation. When we talk, I will explain how the process works in detail and answer any questions you may have. Or, if you prefer, you can call me at 619-517-6791 Discover how other sellers successfully completed a short sale and request a free consultation by clicking here.
Thinking about a loan modification? Our Eastlake loan modification kit has the instructions you will need to get a loan modification approved with your bank. Click here to request a copy. Thanks for reading this, Henry Pailles. Henry is a Real Estate Broker at houseinsandiego Realty. Eastlake Short Sales Realtor: Phone: 619-517-6791. email@example.com. Are you at risk of losing your home? ...We can help! View My homes for sale at www.houseinsandiego.com.
Henry Pailles specializes in loan modification assistance and short sales in Eastlake California. Eastlake Loan Modification Help, Eastlake Short Sales. Eastlake Short Sale Realtor. Chula Vista CA Loan Modification Help, Chula Vista CA Short Sales. Chula Vista CA Short Sale Realtor. Eastlake CA Short Sales. Eastlake Realtor. Copyright 2011 SFI Marketing Institute, LLC. All Rights Reserved.
Important Notice Henry Pailles, houseinsandiego Realty, and the Stop Foreclosure Institute are not affiliated in any way, shape, or form with the government. Our services have not been reviewed or endorse by the government or your lender. Most lenders willingly work with agents on short sales. Why? Because most short sales are beneficial to a lender. If you accept our offer to help you on a short sale, your lender may not agree to a short sale or to modify your loan.
We do offer a loan modification kit. However, the likelihood of negotiating a modification is like everything else in life. It takes work and persistence to convince your lender to modify your loan. No matter what you or we do, your lender may not approve a loan modification.
We do not recommend that you stop paying your mortgage, because this will cause damage to your credit and could cause you to lose your home. Because we know avoiding foreclosure is so important to any homeowner, we recommend that you speak with the appropriate legal or tax advisor before making any decision.
This is not intended as legal, technical, or tax advice. Please speak with a licensed professional before making any decision. Information is deemed reliable but not guaranteed as of the date of writing. You have the option to reject a short sale or loan modification from your lender if it does not meet your approval. If you decide not to go thru with the short sale, then you do not have to pay us our fee.
We normally make a real estate sales commission for helping you on a short sale. The views expressed here are Henry's personal views and do not reflect the views of houseinsandiego Realty. This information on Why A Eastlake Short Sale Saves Your Lender Money is provided as a courtesy to our viewers to help them make informed decisions.