Lake, Seminole and Orange County Real Estate News

You might ask, Why Do Banks Agree To Do Short Sales?

1. Short Sales help reduce Foreclosure rates.

 2. Stabilize market values.

3. Minimize losses to bank.

Banks prefer short sales because short sales make more financial sense to a bank than foreclosure. In most cases, banks receive more money through a short sale than a foreclosure.  The foreclosure process is very costly and time consuming to the bank. By the time a property is fully foreclosed/ repossessed, there may be damage due to lack of utilities, vandalism, etc. and the value goes down. Most banks are willing to work with short sales if the seller is in some kind of legitimate and verifiable financial hardship and a reasonable offer is submitted.

Foreclosure: The average loss per Foreclosure (REO) is 65%. That means the lender or its investors/note holder nets only $35,000 on a $100,000 note.

Short Sale: The average loss on a Short Sale is 40%. Using the same $100,000 original note example, the lender ends up with $60,000, that is a savings of a 25% of Short Sale versus Foreclosure.

If you find yourself in the unfortunate cirmstance of possibly facing a short sale or foreclosure, call me - don't wait!

Cheri@davelowerealty.com

352-360-9763