There is a flurry of information out there in regard to short sales, foreclosures, and just lenders in general. Before you can truly understand why these lenders do the things they do, you have to understand what motivates them. When you understand what motivates them, it is then, you can provide the correct facts to get your Arizona short sale approved or get a loan modification looked at.
So, what is it you ask? What motivates the banks? That’s right. You guessed it. Money. Money motivates the bank. At the end of the day, for a short sale to get approved or a loan modification to be looked at, all you have to do is show that YOUR OPTION nets the banks even one more penny then OPTION B.
This can be tough in some cases. Why? Because we don’t exactly know what the bank’s expenses are. Yes, we know foreclosure costs them money (maintaining the property, lawyer’s fees, etc…). But how much? We won’t really ever know the exact amount.
So what is our advantage? The bank doesn’t truly know everything about your property, you as a homeowner, or your situation. My rule of thumb is: Tell the bank something they don’t know. Present the numbers and give them a reason to truly look at the file. Maybe it is that your short sale property backs up to a road. Maybe it is the your considering bankruptcy?
These scenarios change the numbers and in some cases, changes the tide.
If you have any Arizona short sale questions, please don’t hesitate to contact us.
Sincerely,
Jeff Buettner
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Great post! Here in MN the statistics are pretty consistent…foreclosures are selling for 15% LESS than short sales, NOT including foreclosure costs (attorney fees, carrying costs, etc.).
Exactly Jesse. While the bottom line net motivates the lender, sometimes it can be misleading if their value is incorrect…. Do you work short sales in MN?
Short sales are increasing in numbers all over the country. With so many people out of work and divorces on the rise it seems to be a better way than allowing the home to go into foreclosure.