Short Sale Offers…Myths?

Myth #1:  You can easily buy short sales for dirt cheap and then turn around and resell them for a huge profit.
Myth #2:  Foreclosures, Short Sales, and Bank Owned Homes can be bought for 30 to 50 cents on the dollar with no money down.
Myth #3: Lenders will accept any short sale offer even if it is for only 50% of what the home is worth. After all, they don’t want a foreclosure on their books.

Sorry, these are myths, they’re just not true. Lenders are willing to foreclosure on properties. They have entire departments set up to handle the sale of properties that they have foreclosed on. One more foreclosure is nothing to fear for the banks. At the same time, they do prefer short sales. Short Sales almost always reduce a lender’s loss compared to a short sale.

Banks have highly paid actuaries who have run the numbers and proved that to be the case. That means they take a pragmatic approach on short sales. They want to make sure that the net amount on the short sale offer isn’t lower than what the net would be if  they foreclosed on the home. That is why they order an appraisal as part of reviewing the offer.

Banks won’t agree to a sale if the offer is for substantially less than the appraised/market value. If the offer is a bit lower than the appraisal, then they might accept it. If it is substantially less, then they will ask the buyer to raise their offer...or they will just foreclose.

If you are considering the purchase of a home that is a short sale, call me beforehand…

Or if you are an owner that would like to see if a short sale is a viable option, you can call me directly at (561) 602.1258

Thanks for reading…Steve Jackson

Steve and Jackie Jackson, The Jackson Realty Group Inc., are not affiliated in any way, shape, or form with the government. Our services have not been reviewed or endorse by the government or your lender. Most lenders willingly work with agents on short sales. Why?
Because most short sales are beneficial to a lender. If you accept our offer to help you on a short sale, your lender may not agree to a short sale or to modify your loan. We do offer a loan modification kit.
However, the likelihood of negotiating a modification is like everything else in life. It takes work and persistence to convince your lender to modify your loan. No matter what you or we do, your lender may not approve a loan modification.
We do not recommend that you stop paying your mortgage, because this will cause damage to your credit and could cause you to lose your home. Because we know avoiding foreclosure is so important to any homeowner, we recommend that you speak with the appropriate legal or tax advisor before making any decision.
This is not intended as legal, technical, or tax advice. Please speak with a licensed professional before making any decision. Information is deemed reliable but not guaranteed as of the date of writing.
You have the option to reject a short sale or loan modification from your lender if it does not meet your approval. If you decide not to go thru with the short sale, then you do not have to pay us our fee. We normally make a real estate sales commission for helping you on a short sale.
The views expressed here are Steve and Jackie's personal views and do not reflect the views of The Jackson Realty Group Inc..</font>
This information on Boynton Beach Short Sales: Are Lenders So Desperate They Will Accept Any Offer? is provided as a courtesy to our viewers to help them make informed decisions.
 

 

 

 

 

 

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