Market Driven Short Sales Could Out Pace Foreclosures in 2009?

By
Real Estate Agent with Benchmark Realty TN 288457

With the glut of homes lenders now own in many of the major population centers of our country the reality of Short Sales is becoming more lucrative to those Lenders. Here's the scenario; 

As the second lien holders grow weary of losing 100% of their interest in a mortgage due to foreclosure taking some $$$ from the table is better than no $$$. The "Investors Will Not Allow Us To Take Less Than xx$$$" once was a very popular phrase used by Loss Mitigation Departments in the past...but not any longer. See the one thing about "Investors" is they will take something over nothing and those investors are tired of 'nothing" coming to them as these loans evaporate into foreclosure.

Remember also that almost every major second mortgage lender is also a first mortgage lien holder on other properties in and around the same market. Seeing property values continue to decline only perpetuates the cycle of loss and those losses grow and grow and grow. It is better for all Lenders to have Owners who can pay a mortgage living in houses sold "short" than to have vacant homes not performing and losing more $$$ after foreclosure. This mind set or business philosophy has taken a while for the Big Boys to learn but as with all things that succeed it must be 'Market Driven" to effect a change in philosophy.

As Short Sales become 'National News Headlines" on all the major news outlets it is apparent that this part of the mortgage business will continue to grow and lenders will be forced to streamline their processes as the industry has now become Market Driven by Short Sales.

Foreclosure is your final option....

Paul Moye, Broker

Your Middle Tennessee Short Sale Professional

www.middletnrealty.com

 

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Rainmaker
100,761
Trey Affolter
Keller Williams Realty - Tacoma, WA
Brings HOME Results!

Paul, thanks for this. Good info. I agree, I am finding the second mortgage lenders are much more cooperative.

Jul 06, 2008 03:28 AM #1
Rainmaker
89,332
Paul Moye
Benchmark Realty - Franklin, TN
Broker, GRI, SRES

Trey good luck with your Short Sale business.

Jul 06, 2008 03:42 AM #2
Rainmaker
414,115
Andrew Monaghan
The Monaghan Group - Glendale, AZ
CRS, GRI, EPro Associate Broker

I agree that banks all round are becoming much more realistic as time progresses

Jul 06, 2008 07:43 AM #3
Ambassador
566,489
Rosemary Brooks
BMC Real Estate - 209-910-3706 - Stockton, CA
The Mother & Daughter Realty Team

I believe that short sales will increase shortly.  From all we have heard banks are not in the real estate business.  But guess what?? They are now.  All we have to do is wait for them to get out of the real estate business!

Jul 06, 2008 10:08 AM #4
Rainer
6,811
Dawn Harmon, San Diego Realtor, Broker/Owner
Pacific Homes & Estates - San Diego, CA

Yeah, all those years the banks were fighting to get into the real estate business....they may think differently now......it's not as 'pretty' as the banks thought....

Most of the banks that I have worked with are very cooperative and the process is smooth.  With the possible exception of WaMu.  We have not had one denial....the biggest obstacle is keeping buyers interested through the glacial moving approval process.

Jul 07, 2008 03:25 AM #5
Ambassador
628,288
Roland Woodworth
Q Realty - Clarksville, TN
Q Realty - Power In Real Estate

Paul... Great information... many of the 2nd lein holders are settling for less to keep from loosing all

Jul 07, 2008 04:12 PM #6
Rainer
3,242
Terri Matlock, Assoc. Broker,CDPE,CRS,GRI,ABR
Keller Williams Home Towne Realty - Frederick, MD

I just spent 2 days in a CDPE class and it was the best money I have spent on my real estate career. Certified Destressed Property Expert is what it stands for and boy did it open my eyes to this market ! It looks like this is going to be around for a long time. The best advise is to get to know it ! Try to get this information to your office as soon as you can.

Jul 12, 2008 04:56 AM #7
Rainmaker
180,011
Heather Fitzgerald
REALTY WORLD-Harbert Company, Inc. - Greenwood, IN
REALTOR Greenwood Indiana Real Estate

Scary but I think you might be accurate on this, the short sales I am involved in are equal to reos in my office.

Jul 21, 2008 02:15 PM #8
Rainer
43,764
John and Lisa Marker
RE/MAX Dream Properties - Northville, MI

Paul.

In the Michigan market, short sales are getting tougher rather than easier for some reason. I think mainly because there are so many more being attempted and the banks have not added the necessary staff. A title company on our area just closed their short sale division.. because of a lack of conversion. 

 

Jul 21, 2008 04:44 PM #9
Ambassador
628,288
Roland Woodworth
Q Realty - Clarksville, TN
Q Realty - Power In Real Estate

Paul: Great information. Thank You for sharing. Short Sales are a better option than Foreclosure in most cases

Jul 22, 2008 05:30 PM #10
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Paul Moye

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