If any of you could see me at my desk right now, I am giddy with excitement...I just read this article published two days ago with a couple things that would make any one in this industry (that is doing Short Sales to stay ahead of the curve) equally excited. Read on: (Please note I DID NOT write the following article, full credit and reference is posted at the bottom!)
Some clips:
- "Not all borrowers will qualify for modified loans. Lenders are keenly aware of this, as well as the fact that foreclosing on a home is an expensive proposition: It can cost a bank $30-$50K to foreclose a home, plus carrying costs...There is little enthusiasm for increasing REO inventory in markets already saturated with foreclosed homes and falling prices."
And here's the juice...
- "As an alternative, lenders have new enthusiam to ramp up the volume of Short Sales".
YES!!! It goes on to say:
- "Historically, short sales have not been very appealing to lenders....The paperwork and number of players involved in short sale transcations can easily overburden a servicer who is already dealing with hundreds of thousands of loan modifications, REO dispositions, etc.
But now with over FOUR MILLION new loans in default in the cycle and SIX MILLION more expected in early 2009 due to coming interest rate resets, lenders such as Citibank, BofA and Wells Fargo are fired up for Short Sales..."
Holler if you hear me folks!!! Are you seeing the same thing I am?! Okay, okay, deep breaths, there's more...
"As they see it, if just 25% of current loans in default could be sold through Short Sales, it would stave off ONE MILLION FORECLOSURES (good for homeowners) and replace ONE MILLION no performing borrowers with one million performing borrowers (good for lenders)."
We are already closing 1-2 short sales every day, and the more this type of sentiment is in the press, the more leverage it allows us as industry professionals, because this means the banks are FINALLY starting to come around a bit more. (and what's a "bit" of FOUR MILLION++ leads??) K, I'm doing the rain dance over here, meaning....Let's make it rain! Did someone say...."Opportunity?!"
Whether you are an investor, Agent, or LO, if you're not doing Short Sales, or haven't found an EFFECTIVE and EFFICIENT way to add them into your pipeline of deals you're closing....we need to talk.
We take the headache out of the process becuase we ARE the buyers, but we also handle the entire transcaction, hammer the debt down with your clients' banks, and we never make money unless it closes.
Maybe I'm that crazy one in the bunch that sees the silver lining behind the gloom and doom, but for all those RE pro's out there in Active Rain land that are doing Short Sales....this is GREAT NEWS!!!
For full article: http://rismedia.com/wp/2009-01-26/foreclosure-moratorium-spurs-new-interest-in-short-sales/
To your success,
Tracy Venezia-Royce
Live Free Investment Group
602-957-7773
Tracy@livefreeinvestmentgroup.com
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