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Why would a bank consider accepting a Short Sale?

By
Real Estate Agent with Prudential Verani Realty

Short Sales in the real estate market have started to become more prevalent in this topsy turvy market. Some may ask the question, "why would the banks even consider taking a short sale rather than foreclose?"

As most of us know, given the current economic crunch and the fact that many more people are now surviving week to week than say just a short five years ago, many people are facing the possibility of foreclosure in the near future.

The lists of foreclosure properties are growing exponentially and the burden of keeping them in somewhat decent condition is falling into the hands of the banks who have foreclosed and their agents. This puts a strain on the banks financially as many of these homes end up selling for far less than is owed.

If a homeowner sees the "handwriting on the wall" and begins to market the property aggressively keeping the utilities up to date and the property insured. It makes sense that the bank may want to consider allowing the seller to stay until a buyer for the property is procured and then negotiate with the seller for the shortfall.

This can prevent damage to the home and will probably bring a better sales price than if the home were vacated, left unattended, especially in a cold climate, which could result in problems like burst pipes, vandalism, etc.

Let's face it, homeowners for the most part, don't want to see their home go down the tubes because they put in a lot of time, labor, money and love into buying and maintaining it over the years. They did not plan for the illness, injury, divorce, job loss, etc. that put them into this boat and now they must let go of this dream.

Why not allow them some dignity as they return their beloved home to the marketplace? Short Sales can be a win - win - win for the seller, the buyer and the bank.

If you are facing the possibility of foreclosure or are struggling to make ends meet, please contact us to discuss your options.

 

Judy Tuscano, REALTOR

Team Tuscano

Prudential Verani Realty

603-498-2263 cell phone

603-693-0919 office direct

jude1220@yahoo.com

TEAM TUSCANO is licensed in NH & MA

Comments (14)

Mike Frazier
Carousel Realty of Dyer County - Dyersburg, TN
Northwest Tennessee Realtor

Judy,

Good post! You are exactly right. For many cases, short sales make a lot of sense!

Apr 08, 2008 02:59 AM
Judy Tuscano
Prudential Verani Realty - Nottingham, NH
NH Real Estate Professional
Mike - thanks for your comments and I agree it makes so much more sense than sending the owner into the streets and letting the property go to the dogs.
Apr 08, 2008 03:01 AM
Michael A. Caruso
Surterre Properties - Laguna Niguel, CA

Hi Judy,

Great explanation, thanks for sharing.  Have a great week.  Michael A. Caruso

Apr 08, 2008 03:05 AM
Judy Tuscano
Prudential Verani Realty - Nottingham, NH
NH Real Estate Professional
Thank you Micheal - happy selling.
Apr 08, 2008 03:06 AM
Linda Tremblay
Long & Foster Real Estate, Inc, PA License #AB065488 - Doylestown, PA
Associate Broker - Bucks County, PA Real Estate Services
I definitely think short sales are much better than foreclosure.  It is definitely a win-win for all.  Sometimes a short sale has to be done due to the charges that the home owner gets because they are late and have nothing to do with the actual mortgage owed (late fees, etc)
Apr 08, 2008 03:10 AM
Judy Tuscano
Prudential Verani Realty - Nottingham, NH
NH Real Estate Professional
Linda - This is true because once the fes start it gets more and more difficult to catch up.
Apr 08, 2008 03:48 AM
Gena Riede
Riede Real Estate, Lic. 01310792 - Sacramento, CA
Real Estate Broker - Sacramento CA Real Estate (916) 417-2699
Judy, I totally agree with you and hope that the banks will start hearing this...it can be more of a win, win for all parties rather than the costly expense of foreclosure and as you say, all of the repairs that come with vacant properties.
Apr 08, 2008 04:31 AM
Monika McGillicuddy
Berkshire Hathaway HomeServices Verani Realty - Hampstead, NH
Southern NH & the Seacoast Area

judy,

The Banks should really bend over backwards to work a short sale...it sure beats the alternative.  Keep up the good work!

Apr 08, 2008 05:47 AM
Denise Allen
Resh Realty Group - Chesapeake, VA
Realtor@ Chesapeake, Hampton Roads

Now you just need to explain that to the bank and have them hire more people to make it happen quickly.

Apr 08, 2008 06:12 AM
Judy Tuscano
Prudential Verani Realty - Nottingham, NH
NH Real Estate Professional

Gena - I think it is plain common sense - thanks for weighing in

Monika - It is a no brainer as far as I am concerned. The home stayed in good shape and the seller is not inclined to do any damage when moving out.

Denise - I'm working on that - let's hope they begin to listen.

Apr 08, 2008 01:33 PM
Amie Varney
Prudential Verani Realty - Epping, NH
Judy - I couldn't agree more that short sales are the better alternative to foreclosure.  They are indeed a lot of work but in the end make those agents that are successful with them INVALUABLE to sellers and their banks.
Apr 09, 2008 02:30 AM
Lois Merrithew
Lloyd & Day Real Estate - Tamworth, NH
Way to go, Judy!  You sure are on top of what makes these things happen to good people who are just up against it in these tough times.
Apr 15, 2008 08:16 AM
Todd Clark - Retired
eXp Realty LLC - Tigard, OR
Principle Broker Oregon

This is so true, I just wish all banks felt this way. I've been running in to a few lately that want the property back instead of taking a loss on a short sale.

Apr 16, 2008 05:32 PM
Judy Tuscano
Prudential Verani Realty - Nottingham, NH
NH Real Estate Professional

Amie - Invaluable, that is what I consider my partner and hubby Mike - He has been the driving factor in our success with Short Sales. He works diligently to negotiate with the banks and there is something to be said for the voice that commands attention.

Lois - this economic slide has caught many good people in it's wake and there has to be a way for them to work things out besides foreclosure.

Todd - Tenacity is Mike's best allie in these negotiations and the deep command of a male voice really helps. No offense to the great women negotiators but for some reason I know if I made the calls i would not get heard the way he does and that is fact no matter how much sugar I put into the conversation.

It is too bad the bank would not work with you because in the end it is them that usually loses.

Apr 21, 2008 06:21 AM