Clearwater Florida Homes Condos Real Estate

head_left_image

How much do lenders save by approving Clearwater Beach short sales?

Clearwater Beach Florida - This is one of the most commonly asked questions for people facing a Clearwater Beach Short Sale from both buyers and sellers. Well Scott does a great job backing it up with the facts from one lender. I also believe the foreclosure laws and timelines in different states can effect this as well - the more legal hoops you have to jump through the more expensive it's going to be. If you have more questions as Clearwater Beach short sale agents we're happy to get you the info you need. 

Why would banks agree to a short sale when they know they are going to be losing money?  This is the question I get posed to me frequently.  My answer: it costs them less money than to foreclose on a property; lenders’ primary responsibility is to mitigate their losses. Once we understand that, then the concept of a short sale is really not a mystery.

When you speak with short sale negotiators and other people in the industry, it is common knowledge that banks make more money when the sale is completed through a short sale, rather than permitting a property to go into foreclosure.  This was the unspoken truth that everyone acknowledged but no lender published any data to support or deny these truths.  Not having published data can be problematic for bloggers, as  postings are much more credible when there is data to support your contentions, rather than anecdotal evidence.

Today, for the first time, I discovered published data which sheds light into the true disparity between homes that are disposed as short sales vs. those disposed as REOs after returning to the lenders after foreclosures.    Short Sales net the banks between 13-26% more than REO sales according to Clayton Holdings after conducting a 6 month survey conducted between October 2009 – March 2010. (I've heard higher percentages).

13-26% is a nice tidy bag of cash for the lender holding those underwater mortgages; fantastic job of mitigating their loss.   And people still wonder why short sales are approved.

http://www.housingwire.com/2010/06/10/clayton-finds-short-sales-cut-loss-severity-compared-to-reo

 

 

 

Steve Mun, e-PRO®, QSC®, CDPE®, CHS® 
www.stevemungroup.com

www.sanjoseshortsaleagent.com
650-605-3188

Cal Dre#: 01358433

 

Ask me about my Foreclosure Prevention Program

CDPE - Short Sale and Foreclosure Education

 

QSC

 


Comment balloon 6 commentsCyndee Haydon • October 10 2011 10:23AM

Comments

The bank might look like they are loosing but still is a great deal for them.  The Truth is that people can get better deals with the short sale than with REO at least in my part of town. Thank you for your post, good inside for buyers.

Posted by Amarilys Bocz, Real Estate Broker (305)904-0245 (K.B.A.A Realty - Realtor Miami,Doral,Boyton Beach,Boca Raton) almost 7 years ago

Thanks Amarliys :D we see the same thing here. 

Posted by Cyndee Haydon, 727-710-8035 Clearwater, Beach Short Sales Luxury Condos &Homes (Charles Rutenberg Realty) almost 7 years ago

Hi Cyndee. Excellent reblog! As Clearwater Beach Short Sale Agents, providing the information that your readers want to know only shows how dedicated you are to your profession and to your clients. Thank you for sharing. 

Posted by Katerina Gasset, Get It Done For Me Virtual Services (Get It Done For Me Virtual Services ) over 6 years ago

I agree with Amarilys comment.By the way I like your blog and dedication to your work.People like you will definitely achieve so much more.Good luck !

 

 

Posted by Kim & Kristine Halverson, Realtors (www.LiveWorkSiliconBeach.com, Santa Monica Real Estate :) ) over 6 years ago

I agree with you Cyndee. As top Clearwater Beach Short Sale Agents, you are definitely the agent to call. Excellent post!

Posted by Bas Panch (SCV Home Buyer) almost 6 years ago

Hello Cyndee, I'm a big fan of informative and useful tips like this. Thanks for always taking time in sharing to us your knowledge. You really show a great dedication to you work. Keep it up being a great Clearwater Beach Short Sale Agent.

Posted by Debra Parker, Realtor - Stuart Florida Homes for Sale (Debra Parker Real Estate, Inc.) over 5 years ago

Participate