To forecloser on the average home in U.S. represents a $260,000 LOSS TO BANK/INVESTOR.
It represents a 70% per unit and is considered wholesale sale.
Average loss per unit to foreclosure is $182,000.
The number of foreclosed homes in 2011 is between 1 - 2 Million units.
Total annual loss to foreclose 182,000,000,000 to $364,000,000,000.
LOSS TO BANK FOR A SHORT SALE is 40% per unit and is considered a retail sale.
Average loss per unit to short sale is $104,000.
Number of homes that could be short sold v foreclosed 5 to 10 Million units.
Total annual loss to short sell $104,000,000,000 to $208,000,000,000.
Savings for short selling the inventory over foreclosing is $78,000,000,000 to $156,000,000,000.
Over the next five years the savings to short sale over foreclosing is $390,000,000,000 to $780,000,000,000.
The loss of equity for 130,000,000 homes is $10,000,000,000 (10 thousand million)
Time to short sale and close is less than 300 days.
Time it takes to close on a foreclosure (REO) is about 800 days.
What are we going to do about it?