Click here to discover how other sellers successfully did a short sale and avoided foreclosure. http://columbusohshortsaleadvisors.com/
So today, I'm going to discuss the mindset of lenders during a short sale. In my opinion, lenders craft their short sale policies simply to avoid mistakes.
Here is an example of what they would think of a mistake. A short sale gets approved. After closing, the lender finds out that the buyer "flipped" the property for a profit.
The supervisor might chew out an employee. "That guy just made $20,000. We don't pay you a good salary to make these kind of mistakes", they tell the employee.
Each time something bad happens, they tighten up their policies. Less and less short sales get approved.
(I know from past experience that most approved short sales reduce lender's losses. Not every single one, but 80-90% do.)
One lender had a month long BPO review process. (A BPO is the Opinion of Value that the lenders use to value the property.)
They should look at a BPO and say, "Ok, the BPO says the property is worth X. That means we should approve or deny the short sale based on a value of X."
Instead of doing that, they have entire departments that "review" these BPOs for accuracy. In my opinion, they are not "reviewing" them. They are only second guessing them.
The end result of a policy that takes a month to "review" a BPO is that the short sale process drags out. Good buyers who want to buy the house lose interest.
They cancel their contracts and buy another house. Most of the time, the house is foreclosed upon and sells for even less money as a bank owned sale.
Lenders turn down short sales they should approve because one document is missing. They are trying to avoid a potential "mistake." Sure, they can avoid that mistake.
But, they risk making another, even bigger, "mistake" when the house is foreclosed upon and sells for less money. As you can see, the short sale process is complicated.
If you are researching a short sale, then make sure you hire an agent who understands how it works. If your agent knows how lenders think, then you will have a better chance of success. Thinking about a short sale?
I can help you short sale your property and get back on your feet. Send me an e-mail at robin.lemmons@kingthompson.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 614-741-2495.
Discover how other sellers successfully completed a short sale and request a free consultation by clicking here. http://columbusohshortsaleadvisors.com/
Thinking about a loan modification? Our Columbus loan modification kit has the instructions you will need to get a loan modification approved with your bank. Click here to request a copy. http://columbusohshortsaleadvisors.com/
Thanks for reading this, Robin Lemmons.
Rick & Robin Lemmons is a Real Estate Team at Coldwell Banker King Thompson.
Phone: 614-741-2495
Email: robin.lemmons@kingthompson.com
A Zest For The Best
View My homes for sale at www.rickandrobin.com.
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Important Notice
Rick & Robin Lemmons, Coldwell Banker King Thompson, and the Stop Foreclosure Institute are not affiliated in any way, shape, or form with the government. Our services have not been reviewed or endorsed 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 Robin's personal views and do not reflect the views of Coldwell Banker King Thompson.
This information on Columbus Short Sales From The Lender's Perspective is provided as a courtesy to our viewers to help them make informed decisions.
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