Riverside CA – We throw around the statistic that a short sale reduces a lender’s losses by 20% compared to a foreclosure.

However, I am sure that there are many people who find that hard to believe. So today I am going to give you a breakdown of exactly why it happens.

Click here to discover how other sellers successfully did a short sale and avoided foreclosure.

I will use an real life example. A short sale was listed for sale for $425,000. After a few months, the sellers received an offer for $385,000.

They submitted the short sale package to the lender. The lender didn’t accept the short sale. The home did not sell as a short sale.

The lender started foreclosure proceedings and foreclosed on the home 19 months later. They put it on the market as a bank owned property.

It sold for $230,000. This is a real life example. We have lots of other similar examples. Short sale offers are turned down only to have the home sell for much less after foreclosure.

Let’s go thru the reasons this lender lost so much money.

First off, the real estate market was declining heavily at the time. Home values are still declining even today. So they lost $155,000 in home value decline. Probably half of that loss was because of the declining market.

The other half was because bank owned homes sell for less than owner occupied homes. Why? Because nothing is maintained. The yard isn’t mowed, the house isn’t kept clean, and no pride of ownership shows.

Besides, the sales process for bank owned homes also hurts what they sell for. Last of all, buyers know the home is bank owned and make lowball offers because of it.

They also lost interest income. The home would have sold for $385,000 twenty-one months earlier (17 months foreclosure time plus 2 months to put the home on the market and 2 months to sell.)

$385,000 lent at 4.5% interest earns $17,325 annually. Over 21 months that comes out to $30,318.75. Another big loss.

Plus they had to pay property taxes the entire time the home was on the market. Annual property taxes are $6,521.08. Over 21 months that comes out to $11,411.89.

As you can see, the costs just keep on adding up. I’m sure I am missing other costs. Do you see how a short sale benefits a lender?

Thinking about a short sale? I can help you short sale your property and never pay the bank another penny. Send me an e-mail at homehelp@exit-system.com. I will contact you for a free consultation.

When we talk, I will explain how the process works in detail and answer any questions you may have. Or, if you prefer, you can call me at (951) 732-7873

Discover how other sellers successfully completed a short sale and request a free consultation by clicking here.

Thinking about a loan modification? Our Riverside loan modification kit has the instructions you will need to get a loan modification approved with your bank. Click here to request a copy.

Thanks for reading this, Mike Heckenlaible.

Mike is a Real Estate Agent at NEXTAGE Pacific Coast Realty. Riverside Short Sales Realtor:

Phone: (951) 732-7873. homehelp@exit-system.com.

View My homes for sale at www.IE.ListingBook.com.

Mike Heckenlaible specializes in loan modification assistance and short sales in Riverside California. Riverside Loan Modification Help, Riverside Short Sales. Riverside Short Sale Realtor Riverside CA Short Sales. Riverside Realtor.

Copyright 2011 SFI Marketing Institute, LLC. All Rights Reserved.

Important Notice

Mike Heckenlaible, NEXTAGE Pacific Coast Realty, and the Stop Foreclosure Institute 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 Mike’s personal views and do not reflect the views of NEXTAGE Pacific Coast Realty.

This information on Why A Riverside Short Sale Saves Your Lender Money is provided as a courtesy to our viewers to help them make informed decisions.

Riverside CA – The Stop Foreclosure Institute recently received a question from James. Here was his question.

“I’ve heard that there is a 70% failure rate on short sales. Is that true? If so, then why do so many short sales fail? James”

Click here to discover how other sellers successfully did a short sale and avoided foreclosure.

Here is the answer to his question. Yes, a lot of short sales do fail. However, those statistics are for individual short sale offers submitted to lenders. If the first offer on a short sale is turned down, then another offer is usually submitted.

On each individual house being sold, the failure rate is much lower. Here are the reasons that many short sales do fail.

Reason #1: The sales price is lower than the lender wants. The lender thinks the house is worth X, but the sales price is $30,000 lower than X.

The lenders are not always getting good information on the property values. In my opinion, their valuation method is flawed.

There is a serious conflict of interest in the way lenders obtain their property value. But, the lenders don’t really care to fix it.

Reason #2: The tenant doesn’t want the home to be showed. Many short sales are rental properties. However, the tenant doesn’t want the home to be shown to buyers.

Why not? Well, if the house sells then they will have to move out and find another place. They are comfortable where they are at and they don’t want to move.

This is why a home that is rented is much harder to short sell than a vacant home.

Thinking about a short sale? I can help you short sale your property and never pay the bank another penny. Send me an e-mail at homehelp@exit-system.com. I will contact you for a free consultation.

When we talk, I will explain how the process works in detail and answer any questions you may have. Or, if you prefer, you can call me at (951) 732-7873

Discover how other sellers successfully completed a short sale and request a free consultation by clicking here.

Thinking about a loan modification? Our Riverside loan modification kit has the instructions you will need to get a loan modification approved with your bank. Click here to request a copy.

Thanks for reading this, Mike Heckenlaible.

Mike is a Real Estate Agent at NEXTAGE Pacific Coast Realty. Riverside Short Sales Realtor:

Phone: (951) 732-7873. homehelp@exit-system.com.

View My homes for sale at www.IE.ListingBook.com.

Mike Heckenlaible specializes in loan modification assistance and short sales in Riverside California. Riverside Loan Modification Help, Riverside Short Sales. Riverside Short Sale Realtor Riverside CA Short Sales. Riverside Realtor.

Copyright 2011 SFI Marketing Institute, LLC. All Rights Reserved.

Important Notice

Mike Heckenlaible, NEXTAGE Pacific Coast Realty, and the Stop Foreclosure Institute 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 Mike’s personal views and do not reflect the views of NEXTAGE Pacific Coast Realty.

This information on Why Do Riverside Short Sales Fail? is provided as a courtesy to our viewers to help them make informed decisions.

Riverside CA – The Stop Foreclosure Institute recently received a question from Josh. Here was his question.

“I heard that a short sale reduces a lender’s losses by 20% compared to a foreclosure. You would think that would make them excited to work on my short sale. But, they are dragging their feet.

My lender isn’t that excited to work on my short sale. I think they are waiting for another bailout. Do you think that is true? Josh.”

Click here to discover how other sellers successfully did a short sale and avoided foreclosure.

Here is the answer to his question and some insight into what is really happening at the lenders. I think at the beginning of the recession the lenders were waiting for a bailout.

But, after that the real slowdown was that they are simply understaffed. In 2007 very few people were short selling their house.

The lenders didn’t need a lot of people to process the few short sales. Fast forward 2 years. Short sale volume probably multiplied by ten times or more.

But, it takes time to hire and train more staff. Short sales aren’t simple. There are lots of guidelines and laws regulating them. A new staff person can’t just show up and start processing files tomorrow.

More than anything else this has slowed down the short sale process. So, do the lenders like short sales? The CEO does because it cuts the lender’s losses.

But, the employee who has watched his file law quadruple probably doesn’t like short sales. He is having a hard time coping with the extra workload.

Thinking about a short sale? I can help you short sale your property and never pay the bank another penny. Send me an e-mail at homehelp@exit-system.com. I will contact you for a free consultation.

When we talk, I will explain how the process works in detail and answer any questions you may have. Or, if you prefer, you can call me at (951) 732-7873

Discover how other sellers successfully completed a short sale and request a free consultation by clicking here.

Thinking about a loan modification? Our Riverside loan modification kit has the instructions you will need to get a loan modification approved with your bank. Click here to request a copy.

Thanks for reading this, Mike Heckenlaible.

Mike is a Real Estate Agent at NEXTAGE Pacific Coast Realty. Riverside Short Sales Realtor:

Phone: (951) 732-7873. homehelp@exit-system.com.

View My homes for sale at www.IE.ListingBook.com.

Mike Heckenlaible specializes in loan modification assistance and short sales in Riverside California. Riverside Loan Modification Help, Riverside Short Sales. Riverside Short Sale Realtor Riverside CA Short Sales. Riverside Realtor.

Copyright 2011 SFI Marketing Institute, LLC. All Rights Reserved.

Important Notice

Mike Heckenlaible, NEXTAGE Pacific Coast Realty, and the Stop Foreclosure Institute 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 Mike’s personal views and do not reflect the views of NEXTAGE Pacific Coast Realty.

This information on Another Riverside Short Sale Myth: Lenders Are Dragging Their Feet On Short Sales And Waiting On A Bailout is provided as a courtesy to our viewers to help them make informed decisions.

Riverside CA – Many people mistakenly think that a short sale is adversarial. “I will fight that banker and convince them to let me short sale and walk away from the upside down debt”, they think to themselves.

That is not how short sales actually work. Most negotiations are not adversarial. In fact, most short sale negotiators are just normal people.

Click here to discover how other sellers successfully did a short sale and avoided foreclosure.

They go to work each day and go thru their files. There is a lot of paperwork and reports that have to be filed. Most of them don’t get out of bed looking forward to a tough negotiation.

They simply have to process their file in accordance with the guidelines. The banks have budgeted money to write down mortgages on short sales.

The CEO (or someone similar) at the bank sits down and talks about the loans in default. We have X number of loans in default and we can expect to lose X percentage on each loan.

That means that I have to set aside 10 Million Dollars to cover the projected losses on those loans. He will then give the person managing the short sales guidelines.

Those guidelines will be used to keep the losses at 10 Million Dollars or less. This is why short sale negotiations are not adversarial. They banks already know they are losing money.

They have resigned themselves to losing it. Now they just have to go thru the process and minimize the losses as much as possible.

They know that a short sale reduces losses by an average of 20% compared to a foreclosure. That makes them eager to negotiate a short sale with you.

Thinking about a short sale? I can help you short sale your property and never pay the bank another penny. Send me an e-mail at homehelp@exit-system.com. I will contact you for a free consultation.

When we talk, I will explain how the process works in detail and answer any questions you may have. Or, if you prefer, you can call me at (951) 732-7873

Discover how other sellers successfully completed a short sale and request a free consultation by clicking here.

Thinking about a loan modification? Our Riverside loan modification kit has the instructions you will need to get a loan modification approved with your bank. Click here to request a copy.

Thanks for reading this, Mike Heckenlaible.

Mike is a Real Estate Agent at NEXTAGE Pacific Coast Realty. Riverside Short Sales Realtor:

Phone: (951) 732-7873. homehelp@exit-system.com.

View My homes for sale at www.IE.ListingBook.com.

Mike Heckenlaible specializes in loan modification assistance and short sales in Riverside California. Riverside Loan Modification Help, Riverside Short Sales. Riverside Short Sale Realtor Riverside CA Short Sales. Riverside Realtor.

Copyright 2011 SFI Marketing Institute, LLC. All Rights Reserved.

Important Notice

Mike Heckenlaible, NEXTAGE Pacific Coast Realty, and the Stop Foreclosure Institute 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 Mike’s personal views and do not reflect the views of NEXTAGE Pacific Coast Realty.

This information on A Common Riverside Short Sale Myth: Short Sales Are Adversarial is provided as a courtesy to our viewers to help them make informed decisions.