Why A UTAH Short Sale Saves Your Lender Money

Salt Lake City,  UTAH – I throw around the statistic that a short sale reduces a lender's losses by 20% compared to a foreclosure.

However, I am sure that there are many people who find that hard to believe. So today I am going to give you a breakdown of exactly why it happens.

Click here to discover how other sellers successfully did a short sale and avoided foreclosure.

I will use an real life example. A short sale was listed for sale for $425,000. After a few months, the sellers received an offer for $385,000.

They submitted the short sale package to the lender. The lender didn't accept the short sale. The home did not sell as a short sale.

The lender started foreclosure proceedings and foreclosed on the home 19 months later. They put it on the market as a bank owned property (REO.)

It sold for $230,000. This is a real life example. We have lots of other similar examples. Short sale offers are turned down only to have the home sell for much less after foreclosure.

Let's go thru the reasons this lender lost so much money.

First off, the real estate market was declining heavily at the time. Home values are still declining even today. So they lost $155,000 in home value decline. Probably half of that loss was because of the declining market.

The other half was because bank owned homes sell for less than owner occupied homes. Why? Because nothing is maintained. The yard isn't mowed, the house isn't kept clean, and no pride of ownership shows.

Besides, the sales process for bank owned homes also hurts what they sell for. Last of all, buyers know the home is bank owned and make lowball offers because of it.

They also lost interest income. The home would have sold for $385,000 twenty-one months earlier (17 months foreclosure time plus 2 months to put the home on the market and 2 months to sell.)

$385,000 lent at 4.5% interest earns $17,325 annually. Over 21 months that comes out to $30,318.75. Another big loss.

Plus they had to pay property taxes the entire time the home was on the market. Annual property taxes are $6,521.08. Over 21 months that comes out to $11,411.89.

As you can see, the costs just keep on adding up. I'm sure I am missing other costs. Do you see how a short sale benefits a lender?

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 forsircity@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 me at (801) 651-0707

Discover how other sellers successfully completed a short sale and request a free consultation by clicking here.

Thinking about a loan modification? Our Bountiful loan modification kit has the instructions you will need to get a loan modification approved with your bank. Click here to request a copy.

Thanks for reading this, Dave Forsberg.

Dave is a Real Estate Agent at Presidio Utah Real Estate UTah Short Sales Realtor:

Phone: (801) 651-0707. Forsiecity@gmail.com.

Greater Salt Lake & Davis County Short Sales. Real Help for those that need it most.

Need to sell immediately?   We buy homes in ANY CONDITION and close in 7 days or less!  Call me now at 801.651.0707 for all the details and SAVE your credit!

David Forsberg specializes in loan modification assistance and short sales in Bountiful Utah. Bountiful Loan Modification Help, Bountiful Short Sales. Bountiful Short Sale Realtor Bountiful UT Short Sales. Bountiful Realtor. North Salt Lake Realtor, North Salt Lake Short Sales. Short Sales in North Salt Lake. Woods Cross Short Sales. Short Sales in Woods Cross. Woods Cross Realtor. Sunset Short Sales. Short Sales in Sunset. Sunset Realtor. Kaysville Short Sales. Kaysville Realtor. Short Sales in Kaysville. Salt Lake City Short Sales. Short Sales in Salt Lake City. Salt Lake City Realtor. Centerville Short Sales. Short Sales in Centerville. Centerville Realtor.


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