Why Would a Lender Accept a Short Sale?
 
Lenders & financial institutions are in the finance business, not the real estate business, and they do not want your property. In fact, a foreclosure has far reaching financial and regulatory consequences that most people are not aware of (see below). I can help you negotiate a Short Sale and avoid foreclosure as a Certified Distressed Property Expert (CDPE).
 
 
The True Cost of Foreclosure-
      Example:
  • Property w/market value of $200,000
  • Owner owes the bank $190,000
  • Highest offer the agent has submitted is $180,000
 
Short Sale:
Sale Price (Immediate):                        $180,000
Closing Costs:                                       -    4,000
Commissions:                                        - 10,800
Proceeds from Sale:                           $165,200
 
Loan Amount:                                        $190,000
Less Proceeds from Sale:                    $165,200
Lender Loss:                                        $ 24,800
 
Foreclosure:
Market Value:                                         $200,000
Loan Amount:                                        $190,000
 
Sale Price (After 6 months):                $200,000
Seller Concession:                                 -  6,000
Legal Fees:                                            -   7,000
Taxes:                                                    -      500
Insurance:                                              -   1,000
6 Months utilities:                                   -      600
6 Months maintenance:                         -      600
6 Month Interest Loss:                           -   6,650
Association Dues:                                 -   1,200
Closing Costs:                                       -   4,400
Staffing Costs:                                       -   2,000
Commissions:                                       - 12,000
Proceeds from Sale:                          $158,050
 
Loan Amount:                                        $190,000
Less Proceeds:                                     $158,050
Lender Loss:                                        $ 31,950
 
In many cases, the bank is better off with a below market value offer even if they are able to sell a property in 6 months after foreclosure for full market value.