Well, the most banks lose money when they reject a short sale. They turn down a sales price of $200,000. They foreclose on the home and put it up for sale.
However, they are not able to get the price they want. The home ends up selling for $150,000. What does that mean to you?
First, you probably owe them a lot of money. They may have been losing money on the original short sale. But, now they lost another $50,000. They will probably ask you to repay them for their loss.
Many people are shocked to learn that they are stuck owing tens of thousands of dollars to their bank. A short sale can help reduce the amount you owe. I’ll explain how.
First, most short sales result in the bank forgiving you on the debt. We have seen banks lose hundreds of thousands of dollars and still forgive the debt.
I estimate that over 80% of short sales result in the homeowner result in the debt being forgiven. Contrast this with a foreclosure. In most cases, the bank can chase you down for the money for 7-20 years.
Here is the second way that a short sale can reduce the amount you owe. Most short sales result in the bank result in reduced losses to the bank. I’m sure you are wondering why.
First off, the home usually sells for more money as a short sale than it would as a foreclosure. We have seen $385,000 short sale offers get turned down, only to result in the home selling after foreclosure for $230,000. That’s a huge loss!
Second, a short sale costs the bank less money in property taxes, homeowner’s insurance, lost interest income, etc. Overall, the costs are much less. All these costs add up fast.
Thinking about a short sale? I can help you short sale your property and get back on your feet. Send me an e-mail at email@example.com. I will contact you for a free consultation.
When we talk, I will explain how the process works in detail. If you prefer, then you can call me at (201) 825-6600 x343 or on my cell at (201) 674-3114. If you prefer, just fill out the form by clicking the words, Contact Me below:
Discover how other sellers successfully completed a short sale and request a free consultation by clicking here.
Thinking about a loan modification? Our Bergen County Loan Modification Kit has the instructions you will need to get a loan modification approved with your lender. Click here to request a copy.
Thanks for reading this, James Lockard.
James is a Real Estate Agent at RE/MAX Properties.
Phone: (201) 825-6600 x 343 Cell: (201) 674-3114. firstname.lastname@example.org
James Lockard specializes in loan modification assistance and short sales in Bergen County New Jersey. Bergen County Loan Modification Help, Bergen County short sales, Bergen County Short Sale Realtor, Short Sale Realtor, Bergen County NJ Short Sales, Bergen County Realtor
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James Lockard, RE/MAX Properties, and the Stop Foreclosure Institute are not associated or affiliated in any way, shape, or form with the government. Our services have not been reviewed, endorsed, or approved 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.
If you stop paying your mortgage, then you could lose your home and damage your credit. 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 Lockard’s personal views and do not reflect the views of RE/MAX Properties.
This information on How A Bergen County Short Sale Could Help You Avoid Owing Money In The Future is provided as a courtesy to our viewers to help them make informed decisions.