The 3 Big Reasons You can get out without owing the bank tons of money
The 3 Big Reasons
You can get out without owing the bank tons of money
The banks know they will lose 40% on a home they foreclosure and then sell on the open market. This is because it takes 6-12 months to sell the home after they take it back. They also have to pay attorney fees, and the cost of the money they are lending to you.
We recently short sold a house for a seller and the bank lost over $120,000. They only asked the seller for a $14,000 promissory note. If the bank had taken the home back they would have lost more money and would have come after him for the entire amount. approach for selling your home quickly, for the most amount of money, with no hassle.
Preserve Your Credit Rating:
A short sale will hurt your credit and your ability to buy a home to 18-24 months. But, contrast that with the minimum 5 years that Fannie Mae will not lend to you with an outright foreclosure on your record.
With a short sale, a notice of the settlement will stay on the report for seven years from the initial default date, but the impact on the credit score will not be as severe as a foreclosure or bankruptcy. Typically a short sale will bring your credit score down by 50 to 80 points, versus the 250-300 points a foreclosure will bring it down. That means the seller will receive a lower credit score and have to pay higher interest rates for borrowing down the road, says Rod Griffin, director of public information for Experian, the credit bureau. This is according to a recent Business Week article.
I know how to negotiate with the banks:
Most investors, real estate agents, and other so called short sale experts take 3-4 months to do a short sale. I’m getting mine done in 45-60 days. I’m also getting more of mine closed. Contrast this with what the average person closes. They might close 25-40% of the deals they attempt. We’re closing over 70% of the deals I work on. I am always looking for new ways and strategies that will enable us to get short sales approved faster, while also reducing the amounts the sellers owe to the bank. We are in constant contact with other negotiators around the country. We share our best practices with them and talk about what they have had success with lately.