Why do lenders agree to Short Sales?
June 16, 2009
This is one of those questions many people are asking me these days. There are so many homeowners in Tampa Bay, Florida that are behind on their payments and exploring their options that I thought I’d write a bit about why short sales make sense for lenders. I can assure you they aren’t accepting less than you owe because they want to do you a favor!
Lenders are willing to accept a Short Sale for the following reasons:
- To avoid the cost of foreclosure — Lenders lose, on average, $50,000 per foreclosed home
- To avoid adding additional real estate to their inventory; afterall, they are in the business of lending money, not purchasing homes
- Perhaps the Seller has a true hardship and is a likely candidate for filing bankruptcy
So even though a short sale might be in your lenders best interest it is often a challenge to get them to realize this fact. This is why you need a knowledgeable Realtor skilled in navigating complex real estate transactions like Short Sales. Please don’t hesitate to call me if you have questions or need help. Also, you’re free to post comments right here and I’ll respond quickly.