Short Sales: Are Lenders So Desperate They Will Accept Any Offer?

By
Real Estate Agent with Keller Williams Realty Tacoma
  – Have you heard the following myths about short sales?

Seattle and Tacoma,WA –Hi! This is Nathan Olotoa with 59days2sold.com and www.seattleshortsalesagent.com and I specialize in short sales in the Tacoma and Seattle areas.

Myth #1: You can buy short sales for dirt cheap and then turn around and resell them for a profit.

Myth #2: Foreclosures, short sales, and Bank Owned Homes can be bought for 30 to 50 cents on the dollar with no money down.

Discover how other sellers successfully did a short sales to avoid foreclosure clicking here.

Myth #3: Lenders will accept any short saleoffer even if it is for only 50% of what the home is worth. After all, they don’t want a foreclosure on their books.

These myths are just not true. Lenders are willing to foreclosures on properties. They have entire departments handle the sale of properties that they have foreclosedon.

Another foreclosure is nothing to fear. At the same time, they do prefer short sales. Short sales are known to reduce a lender’s loss compared to a short sale.

They have high paid actuaries who have run the numbers and proved that to be the case. That means they take a pragmatic approach on short sales.

They want to make sure that he short sale offer isn’t lower than what the home would sell if they foreclosed on it. That is why they order an appraisal before accepting the offer.

They won’t agree to a sale if the offer is for substantially less than the appraised value. If the offer is 5% lower than the appraisal, then they might accept it.

If it is substantially less, then they will ask the buyer to raise their offer to the appraised value.

Another thing lenders check before approving a short sale is that they aren’t approving a short sale for someone that is able to afford their home.

They don’t want to lose money on a short sale when they can make money when the person repays the loan. 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 asknate@kw.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 253-310-1177

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

Thinking about a loan modification? Our 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, Nathan Olotoa.

Nathanis a Real Estate Broker at Keller Williams-Tacoma.  Short Sales Realtor

Phone: 253-310-1177. asknate@kw.com.

Listed to Sold in 59 days or less

View Tacoma homes for sale and Seattle homes for sale at 59days2sold.com. View my previous blog posts at www.seattleshortsalesagent.com.

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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 Nathan Olotoa's personal views and do not reflect the views of Keller Williams-Tacoma.

 

This information on  Short Sales: Are Lenders So Desperate They Will Accept Any Offer is provided as a courtesy to our viewers to help them make informed decisions.

Comments (2)

Don Wixom
RE/MAX Executives Nampa, ID - Nampa, ID
"Looking out for your next move..."tm

Wow, Nathan, you are link-full in this post!  Yes, I think the days of lenders giving away houses at short sale are gone, or maybe were never quite there.

Feb 10, 2011 01:23 PM
John Pusa
Berkshire Hathaway Home Services Crest - Glendale, CA
Your All Time Realtor With Exceptional Service

Nathan - Lenders are not desperate to give away properties. Maybe, few percent lass than market value. Thanks for the blog.

Feb 10, 2011 04:10 PM