Bountiful Short Sales: How Short Sales Help Our Economy

Bountiful UTAH –
It is fairly common knowledge that banks lose money when they turn down fair short sale offers.  A recent study by Boston Consulting Group showed that a lender will net 20% more money on a short sale versus a foreclosure sale.


The reason is because short sales usually sell for more money than a foreclosure and do not compound the amount of legal fees associated with a foreclosure. A short sale is usually in better condition, while a foreclosure is usually in some state of disrepair. Most economic experts say housing is one of the biggest drags in today’s economy. Every single foreclosure that sells for less money can drag the rest of the housing market down.

Homeowners often move out after they stop paying. The yard becomes overgrown. This drags the resale value down. This can be a common practice in both short sale and foreclosure situations.  In addition, the  foreclosure process may take as long as 15-20 months (or more) to complete and actual have a new occupant in the property.

That means the banks loses money because of interest and property taxes on the house. This drags down the banks finances. They have less money to lend out, which continues the downward spiral of the economy.

This is an example of a recently rejected short sale that was foreclosed and resold. It illustrates that short sales net more money for the bank compared to the property being foreclosed upon.

A local Bountiful resident had their home listed with an agent we know for $155,000. Eventually an offer came in for $145,900. The agent attempted to negotiate a short sale with the lender. The lender turned it down.  The house was eventually foreclosed on 12 months later. It sold for $121,400. That is a $24,500 loss, in sales price alone, then you must add in foreclosure costs (legal fees, cash for keys, commission, insurance, utilities, property preservation), lost interest, property taxes, etc.


This is exactly why you SHOULD NOT feel bad that you are short selling your home. In fact, I think you should get credit for the positive impacts you are having on the local economy.

Thinking about a short sale? I can help you short sale your property and never pay the bank another penny. Send me an e-mail at utahhomesaver@gmail.com. I will contact you for a free consultation.  When we talk, I will explain how the process works in detail and answer any questions you may have. Or, if you prefer, you can call Dave at 801-651-0707.

Thinking about a loan modification? Our Utah Home Saver Loan Modification Kit has the instructions you will need to get a loan modification approved with your bank.  This is a FREE for you, all you have to do is call or email us today.

Thank you for taking the time to read this, Dave Forsberg.

Dave is a Realtor with Prudential Utah Real Estate - Bountiful.
Phone: 801.651.0707   Email: utahhomesaver@gmail.com

Dave Forsberg and The Utah Home Saver Team specialize in helping Davis County, Utah Homeowners short sale and never pay the bank another penny. Bountiful Loan Modification Help, Bountiful Short Sales. Bountiful Short Sale Realtor. Bountiful Realtors. Bountiful Realty. Bountiful Realtor. North Salt Lake Short Sales. Woods Cross Short Sale Realtor. Centerville Short Sales. Farmington Short Sale Realtor. Fruit Heights Short Sales. Kaysville Short Sales Realtor. Layton Short Sales. Layton Short Sales Realtors. Syracuse Short Sales. Clearfield Short Sales Realtor. Davis County Utah Realtor.