It is estimated that 70% of the homes currently or soon to be in forclosure will go back to the bank without even an attempt at a short sale. A Short Sale isn't forever, however a Foreclosure is. A Foreclosure never comes off your credit report from what I'm told. Forget what you're hearing, the banks want to do short sales if they can. The banks aren't in the real estate business, their in the lending business and having homes in their Real Estate Owned department hinders their lending ability. Need help, contact me today.
Keller Williams Realty Southern Arizona (Sierra Vista) - Sierra Vista, AZ
Associate Broker GRI, ePRO, CIAS, CDPE Sierra Vist
Dave,
Lenders generally (not always) prefer a short sale over a foreclosure for a simple reason: money.
I can show them that they have a choice of losing $100,000 in a short sale... or, losing $150,000 in a foreclosure, as an example.
Assuming that all else is equal, the lender comes out ahead because the property remains occupied and cared for, with a moivated seller, and the property does not deteriorate, or suffer actual damages by an angry borrower, or by vandals or thieves.
The unforeseen costs of holding, and attempting to maintain a vacant, unloved, REO, make the difference in the DOLLARS THE LENDER WILL LOSE.
Be safe.
Mike
Aug 12, 2011 05:22 AM
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