Kalamazoo MI– Banks often lose money when they turn down short sale offers. A recent study by Boston Consulting Group showed that a lender will net 20% more money on a short sale versus a foreclosure. Why? Well, short sales usually sell for more money than a foreclosure. A short sale is usually in good shape, while a foreclosure is often in disrepair.
Most economic experts say housing is the biggest drag in today’s economy. Every single foreclosure that sells for less money drags the rest of the housing market down.
Homeowners often move out of a house after they stop paying. The yard becomes overgrown, maintenance is minimal. This drags the resale value down. In addition a foreclosure takes 18-24 months.
That means the banks loses money on interest and property taxes, and management fees on the house. This drags down the banks finances. They have less money to lend out, which causes another drag on the economy.
Here is an example of a a situation where a rejected short sale that was foreclosed and resold. It illustrates that short sales sell for more money than a foreclosure. Say a person listed a house for $130,000. Eventually an offer came in for $119,900. The seller’s agent attempted to negotiate a short sale with the lender. The lender turned down the short sale offer.
After 12 months, the bank foreclosed on the house. As a foreclosed property it sold for $96,400. That is $23,000 less than what the bank was offered in the short sale and we have not even added all the additional costs to the bank. Costs like foreclosure costs, managment costs, lost interest, property taxes, etc.
This is why if you have a hardship that does not allow you to continue your ownership, don’t just sit and wait. Call the Veenstra Team and let us facilitate a short sale transaction. A short sale will almost always have less negative drain on the bank — and, it can be argued — on the economy.
Do you have a hardship that is making it difficult to pay your mortgage? Are you wondering about a short sale? We can help you short sale your property with zero fees. We can help you dig out of a difficult situation. Send us an email. We will contact you for a free consultation.
When we talk, we will explain how the process works in detail. If you prefer, you can call us at 269-350-5514.
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The Veenstra Team specializes in helping homeowners STOP Foreclosure, and short sales in Kalamazoo Michigan.
Contact the Veenstra Team to STOP Foreclosure and short sales in any of the communities surrounding Kalamazoo; including Kalamazoo short sales, Portage short sales, Mattawan short sales, Oshtemo short sales among others. Of course, we are also able to help home buyers in the greater Kalamazoo area and home sellers in the greater Kalamazoo area purchase or sell any Kalamazoo homes, Kalamazoo income property, Kalamazoo Lake Homes, Kalamazoo Executive Homes, or Kalamazoo resort homes. We offer specialized services for Kalamazoo senior citizens and children with aging parents seeking Kalamazoo real estate information. We also offer free Kalamazoo relocation packets, Kalamazoo tours and specialized services for people who are moving to Kalamazoo. For families moving anywhere else in the US or Canada, we offer Free Nationwide Relocation Services and free REALTOR referral.
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