Why Perrysburg Short Sales Are Difficult
December 22nd, 2008 . by Jon ModeneI am doing more and more short sales these days.
Why?
Because our local economy is slowing down.
Which puts job pressure on workers and business owners.
Which puts income pressure on homeowners.
Which puts houses behind in mortgage and second mortgage payments.
Which leads to . . . . short sales.
Or at least attempted short sales.
Because often there are 2 different lenders on the same piece of real estate.
And there are complications. Like bankruptcy, income collapse, damaged homes, etc.
All of which conspire to make the short sale harder and harder to accomplish. And you do know, of course, what a short sale is. Right? It is when the bank or lender takes less than what they are owed (they are shorted) and they still release the mortgage so that the seller can still sell.
What is the problem?
Most lenders are buried with paperwork and applications for mortgage renegotiations and short sales and foreclosures right now. Absolutely buried.
In my experience less than 1 out of 3 short sale attempts get closed. We can increase the odds if the seller does all of the right things and has a good reason for attempting the short sale and if the buyer involved is very, very patient. Then the odds go up to 60 or 70%. But it takes a lot of work and a lot of time.
Right now the lenders are the main problem. When they forgo the shorts sale they then end up having to foreclose on the house. Which usually, by the time they get into the property, is full of mold/water/broken pipes/stolen copper/and any other bad thing you can imagine. When they finally get clear title, pay off there acquisition costs, and finally get it sold in a declining market, they always will have been better off to take the short sale dollars. Every time they would have netted more money with a short sale vs. a foreclosed sale.
Perrysburg short sales are difficult – and worth the effort for the seller. If the lenders catch a clue, they will win in a difficult situation as well.
Join the Discussion! Leave a Reply: