As a Short Sale Specialist, I find myself constantly reassuring distressed homeowners. The majority of people I work with are under the mistaken impression that their lender is awaiting the opportunity to foreclose on them with some kind of sick elation! Nothing could be further than the truth. Banks are businesses and as such, accustomed to making a profit! It typically costs more money for a bank to pursue a foreclosure than to allow a motivated seller to short sell their home. In general, it is thought that banks make 20% to 30% more on a short sale than they would on a foreclosure. There are some exceptions to that rule though. State by state, the numbers are different. In Florida, for instance, it is very inexpensive for a bank to initiate a foreclosure. In Indiana, my home state, the foreclosure process is lengthy and that time equates to money spent! Usually on a short sale, if a house is appropriately priced, an offer will come in closer to market price than if that house has gone through foreclosure. The bank assumes additional carrying costs during the foreclosure process which include maintenance, utilities and repairs. The bank also assumes additional risk during the process because of vacancy - vandalism is a concern. If the bank has the opportunity to avoid these additional costs, including the cost that directly correlates with time, they will most definitely agree to work with the homeowner that wants to try to short sell their home instead of foreclosing on that homeowner and taking their house back! If you need additional information to help determine whether or not short selling is the right option for you, or you want information relevant to options other than foreclosure, please email me at rbcramer8@gmail.com. I'm happy to talk to you! We're all in this together!!
