Short Sale Realtors Serving: Macomb ■ Oakland ■ Lapeer ■ St Clair ■ Wayne ■ Genesee Counties
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The short answer is, "It's in the lender's best interest."
Whenever
a borrower stops paying on a mortgage that loan becomes what the lender calls a
"non-performing asset."
It's a liability.
It is money on which they are earning no interest and what's worse is that they
must now put
back up to eight times that amount in reserve.
So if you
have a $250,000 mortgage that is going into foreclosure, they have to put up $2m
in reserves.
This is additional monies on which they earn no interest. Now let’s say they
have 500 mortgages like these.
What about 5,000 non=performing loans like some of the large lenders have.
Since
earning money is what they are in business for, the lender stands to lose less
money by accepting
a short sale.
Then they can put the money back into circulation to earn even more money.
An
estimate from a few years back said that if it took 18 months to get a house
back the lender stands to lose about $58,000 in costs.
You can understand why the loss of a short sale is less than the cost of foreclosure.
And… If
the lender takes the property through foreclosure that property becomes bank
owned.
You have heard properties described as REO. That stands for real estate owned.
The more REO properties held by
the lender the worse it looks for the lender and the more reserves they must
carry.
And plus…
Bank owned properties are a major headache for the lender.
Now they have to cope with property maintenance, utilities, property taxes,
city violations, HOA fees the list goes on and on.
They then
must list the property with a Realtor® and pay a commission.
They also must insure the property and deal with the possibility of vandalism by
the previous owner or others.
So if someone tells you that your bank will not even look at a short sale, call someone else. That person is either unqualified or misinformed.
If you have any short sale questions call or email us.
And be sure to call Jerry Smith and Brian LaDue if you would like to short sale your home.
We are “Your Michigan Short Sale Specialists”
Contact Us Anytime:
Brian LaDue
Short Sale Specialist
(248) 787-8644
shortsale@walkawaydebtfree.com
