SALT LAKE CITY,UTAH – I received a few responses from yesterday’s blog post. Most of the questions went something like this.
"I think a lender would be stupid to approve an investment property short sale for a wealthy person. If I was the lender I would sue them for the loss. Jan.”
The bottom line is that people didn’t think a lender would allow a wealthy person to walk away from the debt on an investment property.
Here are a few reasons that a lenders will allow a wealthy investor to walk away from an upside down investment property.
Lenders know that if they can give a customer what they want, then it will help them. If they don’t give a customer what they want, then everything turns into a fight.
Some homeowners will hire a lawyer to review every clause in the mortgage. They will check to make sure that each clause of the mortgage meets every single conceivable state and federal law.
Other people will declare bankruptcy to avoid paying the debt. This is the biggest impediment keeping lenders from collecting on a debt.
Debt is very hard to collect even in court. In fact, only around 8-10% of all judgments are ever collected. That means a lot of people and lenders spend thousands of dollars in court getting a judgment, only to never collect the money.
This is one of the reasons that a debt collection company recently bought $20 Million Dollars worth of Deficiency Judgments for $150,000. I don’t know which lender sold them, but apparently that is all they thought they were worth.
I hope this helps you see why a lender would find it simpler to approve a short sale rather than pursuing a debtor in the hopes of collecting on the deficiency.
Thinking about a loan modification?Our Layton loan modification kit will show you how to reduce your mortgage payment, keep your home, and get back on your feet. Send me an e-mail at forsiecity@gmail.com to request a Free Copy. Or, click here to request a copy.
Thinking about a short sale? I can help you short sale your property so you can move on with your life. Send me an e-mail at forsiecity@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.
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. utahhomesaver@gmail.com.
Greater Salt Lake 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 801.651.0707 for a free consultation.
"I think a lender would be stupid to approve an investment property short sale for a wealthy person. If I was the lender I would sue them for the loss. Jan.”
The bottom line is that people didn’t think a lender would allow a wealthy person to walk away from the debt on an investment property.
Here are a few reasons that a lenders will allow a wealthy investor to walk away from an upside down investment property.
Lenders know that if they can give a customer what they want, then it will help them. If they don’t give a customer what they want, then everything turns into a fight.
Some homeowners will hire a lawyer to review every clause in the mortgage. They will check to make sure that each clause of the mortgage meets every single conceivable state and federal law.
Other people will declare bankruptcy to avoid paying the debt. This is the biggest impediment keeping lenders from collecting on a debt.
Debt is very hard to collect even in court. In fact, only around 8-10% of all judgments are ever collected. That means a lot of people and lenders spend thousands of dollars in court getting a judgment, only to never collect the money.
This is one of the reasons that a debt collection company recently bought $20 Million Dollars worth of Deficiency Judgments for $150,000. I don’t know which lender sold them, but apparently that is all they thought they were worth.
I hope this helps you see why a lender would find it simpler to approve a short sale rather than pursuing a debtor in the hopes of collecting on the deficiency.
Thinking about a loan modification?Our Layton loan modification kit will show you how to reduce your mortgage payment, keep your home, and get back on your feet. Send me an e-mail at forsiecity@gmail.com to request a Free Copy. Or, click here to request a copy.
Thinking about a short sale? I can help you short sale your property so you can move on with your life. Send me an e-mail at forsiecity@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.
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. utahhomesaver@gmail.com.
Greater Salt Lake 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 801.651.0707 for a free consultation.
