Getting a Short Sale Approved - Why do banks approve a Short Sale?

By
Real Estate Agent with Choice Homes Team
Get your short sale approvedThere are many different reasons that a bank or lender would want to approve a short sale for a home owner.

Many of the mortgage companies are now allowing homeowners to Short Sale their homes.

First, foreclosure costs are extremely high for lenders.

They have to pay asset management companies and realtors to handle the foreclosure process.

This cost and what it takes to keep properties maintained, keep utilities on, and make repairs when damage occurs, can drag down the amount that the lender will make when they end up selling the home as a foreclosure after they have paid all of the money that it took to obtain the property thruogh the legal means of foreclosure.

This has a direct impact on the lender's bottom line, and when it boils down to it, this is of the upmost importance to the banks.

Second, when a homeowner works to short sale their home, they typically continue to live in the property and take care of the property.

This is a great benefit to lenders as they work to clean up delinquent and non-performing loans.

So, when done correctly, there are a number of reasons why a mortgage company would agree to approve a short sale.

If you would like more information about how to get a Short Sale approved for you, just give us a call or complete the following form:



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Topic:
Home Selling
Groups:
Keller Williams Virginia
Tags:
northern va short sale process
short sale

Comments 1 New Comment

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Rainer
281,314
Dan Hopper
Denver Realtor Advocate/Short Sale/Loan Modificati
RE/MAX Alliance, www.danhopper.com

All above is very true, Robert.  Banks have learned, and at a costly lesson, that it makes for a better cost analysis to work a short sale rather than letting a property go into foreclosure.  Another reason why we try very hard to get the word out to the seller to NOT walk away from their property.  It is easier on the seller to short sale, as well.

July 27, 2011 08:22 AM
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Rainmaker
278,006

Robert Earl

The Earl of Real Estate
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