Short Sale Shift

Welcome to shortsaleshift.com. Minnesota’s foremost short sale agents, Josh Pomerleau and Sarah Willman are going to discuss why a bank would want to complete a short sale.

One of the first queries we get from home owners that are going through foreclosure or beginning to skip their payments is “Why would a lender choose to do a short sale?”. Often times the house owners think that it just sounds to good to be true. But, there are a lot of reasons why a bank would favor a short sale over foreclosure. At the end of the day, it saves the lender lots more money to progress through a short sale than to progress through a foreclosure.

There are a lot of negative expenses linked with foreclosing on a property. There are legal fees. Lots of times the home owner will vacate the property. When that happens, the bank has to worry about people breaking into the house and thieving things. In addition, the general maintainence of the house is ignored. There are also cases where property owners will damage their home because they are upset with the bank taking their house from them.

The bank looks at it like this. It is a great deal less possible that the home will be damaged when they complete a short sale. It gives the home owner a sense of resolution by not losing their home. Then the house owner can move on under their own power.

Additionally, the lender will have to insure the house from all types of scenarios such as tornados and other natural disasters. Those expenses are also unconstructive to the bank.

At the end of the day that is why the lender would aim to complete a short sale. The lender also wants to close on the property quicker than they could with a foreclosure. Getting that cash from a short sale permits them to turn around and loan that cash out again. So, the time value of capital is worth quite a bit to the bank.

Through the short sale route, statistics show that the lender will net more money from a short sale than they will from a foreclosure.

Minnesota Short Sale Shift can answer your questions. We are Minnesota’s Foreclosure Avoidance and Short Sale Specialists.

Get more help from short sale Realtors, Josh and Sarah, at Short Sale Shift presented by the Short Sale Specialists of Minnesota

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