Antioch CA – It sounds weird that a lender would approve a short sale when a homeowner is current on their payment. There is a logical reason that they do it. Let me explain.

Click here to discover how other sellers successfully did a short sale and avoided foreclosure.

Let’s look at a person who owes more than their home is worth and moves for a job transfer. Their lender does not approve their short sale.

The lender tells them, “We granted the loan thinking you were a credit worthy borrower. We expect you to repay us every dime”, The borrower moves out of town and rents out the house.

Unfortunately the tenant only pays 60% of the mortgage payment. So the homeowner has to come up with $800 every month. They manage to do that for a year. Then, the tenant moves out.

Unfortunately, the tenant didn’t keep up on the maintenance of the house. Most tenants don’t treat the house they are renting as well as a homeowner would. Why should they?

After all, it’s not their own home. Because of that, the home needs $5,000 in work before it can be rented again. The carpet need to be replaced, the interior needs to be repainted, and the yard mowed.

The original borrower who moved out of town doesn’t have $5,000. What happens next? They try to rent the house in its current condition. No one wants to rent it.

The homeowner manages to pay the mortgage for a couple more months. Then, they stop paying because they can’t afford to do so. 12-18 months later the lender forecloses on the house.

They sell it as a bank owned property. The house sells for less than it would have back at the beginning. This is because it sits empty for 18 months while the yard gets overgrown and people vandalize it.

Someone throws a brick thru the window, which allows rain to get inside and mold to grow. As you can see, there is a financial advantage to the lender is approving a short sale for a job relocation.

Lenders aren’t stupid. They hire on smart analysts to crunch the numbers and analyze these type of situations. These analysts have lots of data to review from past loans already on the books.

They can look thru 10, 20, or 100 files and see what would have reduced losses in the past. The insurance industry has number crunchers called actuaries that do a job similar to this.

Their job is to take a risk and affix a cost to it. Insurance and banking are similar in some respects. They both analyze risk and try to affix a solid cost to it. They also attempt to reduce the cost of each risk.

That is why lenders allow short sales. They have analyzed all the costs of a short sale versus the alternative.

When their analysis shows a short sale will cost less than the alternative, then they will approve the short sale. 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 shonntsellshomes@gmail.com. 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 925-754-1611

Discover how other sellers successfully completed a short sale and request a free consultation by clicking here.

Thinking about a loan modification? Our Antioch 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, Shonn Thompson.

Shonn is a Real Estate Agent at Better Homes Realty. Antioch Short Sales Realtor:

Phone: 925-754-1611. shonntsellshomes@gmail.com.

Experience and Results That Will Move You!

View My homes for sale at www.shonnthompson.com.

Shonn Thompson specializes in loan modification assistance and short sales in Antioch California Antioch Loan Modification Help, Antioch Short Sales. Antioch Short Sale Realtors. Pittsburg Loan Modification Help, Pittsburg Short Sales, Pittsburg Short Sale Realtor Brentwood Loan Modification Help, Brentwood Short Sales, Brentwood Short Sale Realtor Antioch CA Short Sales. Antioch Realtor.

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Important Notice

Shonn Thompson, Better Homes 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 Shonn’s personal views and do not reflect the views of Better Homes Realty.

This information on Why Lenders Approve Antioch Short Sales When A Borrower Is Current is provided as a courtesy to our viewers to help them make informed decisions.