Foreclosure: Just A Few Small Numbers (remember nine 0's is a billion, 12 a trillion)

By
Real Estate Agent with Keller Williams Realty 0590712

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?

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