Why would a bank or lender agree to a short sale? If you’re in the Orlando area, you need to know this!
A common question I often get is: “Why would a bank or lender agree to a short sale?”
Let’s look at an example…
The seller of a home owes 200k on a property where the best offer was only 160K. The reason why could be almost anything…lack of curb appeal, cost of repairs, old house, today’s slow market?
What are the seller’s choices? The homeowner can sell for 160K and bring 40K to close the deal because the loan is upside down. Or the buyer and seller can work together to negotiate a short sale.
Obviously, if the seller doesn’t have 40K to bring to the table at closing, the deal’s not going to get done. Even if they do, does it really make sense to toss in 40K without seeing if the bank will take less?
Of course, it takes a great deal MORE than a phone call to get a bank to agree to taking a loss, no matter what the number.
Banks actually don’t want to take houses to foreclosure because they don’t want to have to worry about selling residential real estate; after all, they’re financial institutions, not real estate brokerages. Being heavily regulated by the federal government, banks can only have so many bad debts on their books. A foreclosed property represents a “non-performing asset” that ties up money, hurting profitability.
For this reason, doing a short sale on a property in foreclosure is the PREFERRED method used by banks to liquidate property.
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Jerry LaRose is an Orlando Area Residential Real Estate Expert, who can assist you with the purchase and/or sale of Real Estate in Orlando, Windermere, Winter Garden Florida or any place in the country. Jerry has created a team of professionals throughout Orlando and the country to ensure that you enjoy a smooth transition to your new area. Please visit http://OrlandoShortSaleExpert.com or www.JerrySellsOrlando.com for your real estate needs. Please give me a call if you have questions about the Orlando and Central Florida real estate market.
P.S. If you are listing your home as a short sale in Orange or Osceola County Florida and Orlando, Windermere, Winter Garden, Kissimmee or Ocoee Florida make sure you hire an agent who knows how to do short sales and has the experience to get the job done. We are doing successful short sale packages. Call us at 407-580-7011 to find out more about Orange County Short Sales and Orlando Area Short Sales
