Columbus OH – On our last blog post, we ran some numbers on why a short sale reduces a lender's losses by 20% compared to a foreclosure.
Today I am going to add all the numbers together. That way we can see exactly how much this lender lost by not accepting the short sale.
I am using the real life example of a short sale that was listed for sale for $425,000. The lender turned down an offer for $385,000 and ended up selling the home for $230,000.
Let's add up the costs.
$155,000 in sales price loss. ($385,000 minus $230,000.)
$30,318.75 in lost interest income. ($385,000 lent at 4.5% interest over 21 months.)
$11,411.89 in property taxes that would have been paid by the short sale buyer, but instead were paid by the lender. ($6,521.08 annual property taxes over 21 months.)
$3,000 in estimated foreclosure costs. (This is to pay the foreclosure attorney and the court costs.)
$4,200 in Homeowner's Insurance. ($200 monthly times 21 months.)
$203,930.60 in total lost because they didn't accept the short sale offer. Ouch! I don't care how rich you are (or how many bailouts you received), that is a lot of money.
Yes, these numbers are correct. Real estate is an expensive business. It costs a lot of money to own and maintain a house.
Just look at how much you spend on your mortgage, property taxes, homeowner's insurance, maintaining your house, and mowing your yard. Now multiply that by 21 months. Make sense?
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 rickandrobin@rickandrobin.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 614-439-2730.
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The views expressed here are Robin's personal views and do not reflect the views of Coldwell Banker King Thompson.
This information on The Final Numbers On How A Columbus Short Sale Reduces Losses is provided as a courtesy to our viewers to help them make informed decisions.
