"SHORT SALE" VS. FORECLOSURE

"SHORT SALE" VS. FORECLOSURE
TEN CONSIDERATIONS

FORECLOSURE

•1.      More legal costs

•2.      Recovery of lesser amount

•3.      More non-performing loans

•4.      Higher reserve requirements

•5.      Possible negative impact on salability of existing loans to secondary market

•6.      More R.E.O. marketing costs

•7.      Negative perception by public

•8.      Possible extensive property repairs

•9.      Marketing challenge of extensive inventory

•10.  Likely lower appraisal value can have negative impact on neighborhood & community

SHORT SALE

•1.      Fewer legal costs

•2.      Greater recovery ratio

•3.      Fewer non-performing loans

•4.      Lower reserves

•5.      Existing loans more marketable to secondary market

•6.      Fewer R.E.O. marketing costs

•7.      Fewer repairs likely

•8.      Greater marketability of property

•9.      Likely greater value from broker price opinion

•10.  Less negative impact on neighborhood