The Short Sell Secret Part 1
March 10th, 2010
OK people, it is no great secret that millions of American home owners in every city, state and county have been foreclosed on, are going into foreclosure, in pre foreclosure or at the very least missing their mortgage payments. It is only a matter of time before the lender in Phoenix, Arizona sends out that nasty default notice letter and your world starts to crash around you. Does that sound about right?
The vast majority of us in Phoenix, AZ know someone who has dealt with one of the above scenarios. Perhaps you, yourself, are dealing with one of those scenarios listed above. If that happens to be the case, we’ve got something to share with you. It is a little known secret and a common misconception. The bank that holds your mortgage DOES NOT WANT TO TAKE YOUR HOME FROM YOU!
Lenders, banks, mortgage companies, NONE of them are in the real estate business. Their plates are already full dealing with loans, investors, and that little tube that you pass things through in the second lane of the drive up window. It gives them no great pleasure or any real benefits if they have to traipse trough the legal process of a home foreclosure. Foreclosure come with a host of things that banks despise like legal fees, attorney fees, kicking the home owner out on the street, maintaining the property to keep it secure and in good condition, hiring people to do repairs, paying property taxes for the home, or the utility bill. All of these things need to be tended to while the courts process a foreclosure and wait for it to be sold at a measly price during a foreclosure auction.
The fact that banks do not want to own your home is super news for you. Because of all of these headaches and current economic conditions, coupled with the dwindling home sales in a weak real estate market, lenders are more agreeable than ever when you ask them to short sell your home. The short sell of a home is a common sense business decision for any lending institution.
Consider this. Would you rather foreclose on a property with all of the fees, managing, upkeep, foreclosure sale, etc. and still lose money or would you prefer to allow a defaultin home owner to short sell their home.
The truth is evident, and the lenders have spoken loudly with their actions in the past few months. They are screaming from the top of the bank, “Short Sell your home!” Banks see the inevitable results of the situation that they are in. They are going to lose money. So, with that in mind, they turn their efforts to losing as little as possible (or from the other side of the coin, recouping as much as possible). The short sale helps them do just that. See part 2 of this article for more on the short sell and its benefits.
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Fred Weaver is a founding co-owner of Group 46:10. He has been working in the financing/real estate business for over 7 years. Fred began his real estate career by working for a large wholesale bank as a processor and rate/lock specialist for home mortgages. After 2 years in the business, Fred transferred from the banking side of home loans to the mortgage side. While on the mortgage side of financing, Fred gained experience originating mortgages and processing files for Morgan Capital of Arizona, Inc.
Kevin is a founding co-owner of Group 46:10. He began working in the real estate business in 2007 after spending 8 years working in the finance industry for companies such as Bank One, Green Tree Financial, & GE Capital.