Valley Springs CA - Yesterday's post talked about how banks lose money when they turn down short sale offers. A recent study by Boston Consulting Group showed that a lender will net 20% more money on a short sale versus a foreclosure.
The reason is because short sales usually sell for more money than a foreclosure. A short sale is usually in good shape, while a foreclosure is usually in disrepair.
Most economic experts say housing is the biggest drag in today's economy. Every single foreclosure that sells for less money drags the rest of the housing market down.
Homeowners often move out after they stop paying. The yard becomes overgrown. This drags the resale value down. In addition a foreclosure takes 18-24 months.
That means the banks loses money because of interest and property taxes on the house. This drags down the banks finances. They have less money to lend out, which causes another drag on the economy.
Here is an example of a rejected short sale that was foreclosed and resold. It illustrates that short sales sell for more money than a foreclosure.
A guy we knows listed a house for $130,000. Eventually an offer came in for $119,900. The agent attempted to negotiate a short sale with the lender. The lender turned it down.
The house was eventually foreclosed on 12 months later. It sold for $96,400. That is a $23,000 loss, before adding in the foreclosure costs, lost interest, property taxes, etc.
This is why you shouldn't feel bad that you are short selling your home. In fact, I think you should get an award because of what you are doing to help the economy.
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. If you prefer, then you can call me at (209) 743-1061.
Discover how other sellers successfully completed a short sale and request a free consultation by clicking here.
Thinking about a loan modification? Our Modesto 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, Daniel Seider.
Daniel is a Real Estate Broker at Big Trees Real Estate.
Phone: (209) 743-1061. email@example.com.
View My homes for sale at www.bigtreesrealty.com.
Daniel Seider specializes in loan modification assistance and short sales in Valley Springs California. Valley Springs Loan Modification Help, Valley Springs Short Sales, Valley Springs Short Sale Realtor. Short Sale Realtor. Valley Springs CA Short Sales. Valley Springs Realtor.
Copyright 2010 SFI Marketing Institute, LLC. All Rights Reserved. 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. The views expressed here are Seider's personal views and do not reflect the views of Big Trees Real Estate. This information on Modesto Short Sales: How Short Sales help the economy is provided as a courtesy to our viewers to help them make informed decisions.