Why It Makes Sense For Lenders To Discount Their Mortgages By Tens - Or Hundreds - Of Thousands

Sound too good to be true? It’s not. This process is called Short Selling, and while it would definitely be a stretch to say that banks Love it, they’re frequently will to be persuaded to do it when it looks like the best of a series of bad (for them) options. What you have to do is convince them that you’re saving them money by giving them less than they are owed, and to do this, you need to think about a lender’s perspective.

Here are some things to consider:

1. What does the lender stand to lose by foreclosing on a house? At first glance, you may think, Nothing! But this is not accurate. A bank does not want land, a bank wants Money! If they were interested in dealing with a house, they’d build houses instead of giving other people the money to do it. So from the beginning, a foreclosure is not in a bank’s ideal scenario. You have to convince them that the trouble of a foreclosure will be worse than taking a hit on the amount of money they’re owed.

2. Approximately how much money is the bank going to pay in order to foreclose on the property? There is a standard foreclosure process, and it costs a lender in at least two major ways – Money and Time. There are associated fees from attorneys, reselling, etc, and that’s just for starters. Because there is an eviction process that a lender must follow in order to foreclose, a borrower has about 60 days from the start of the process to completion.
   
   A lot of damage can be done to a property in that time – either deliberately or just out of neglect. After all, would you be worried about fixing that leak in the guest room if you were about to be thrown out of your house entirely? Probably not. And 60 days is a Long time for water to drip down a wall.

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   How long will it take to resell the house on the market? This is where you have a major advantage, because you are part of a network of real estate investors who understand how valuable even damaged property can be, and who have the wherewithal to make property investments and purchases that might intimidate the average buyer.
   
   If the bank puts the house on the market, it’s taking several risks. The house may not sell right away – in a slow market it could take months or even over a year! The house may need massive repairs – that’s more money into the house that the bank already is owed on! And, if the market isn’t right, they Still may not recoup their losses – so now they’re operating at a major loss not only of money, but of time.

When these considerations are factored in appropriately, you, as a short seller, can make a very convincing case to a lender that they should sell you a property at a fairly significant loss to them. And, as a short seller, you then can utilize other resources to turn that property around in a very brief period of time – sometimes without ever taking possession of that distressed deed.

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You’re helping everyone – the lender, the borrower (who now at least doesn’t have a foreclosure on his or her credit and is out from under that debt), your buyer (who’s getting a great deal), and, of course, yourself – after all, you just made a pretty decent week’s wage!

We offer mortgage short , short sale training, short sale banks, short sale, foreclosure short sale, short sale of a home, real estate foreclosure short sale, make money in foreclosure short sale, and tom butler short sale magic.

Our names are Neal and Cory Barnett and we haven’t always made a lot of money. We are two brothers who came from a large family raised in a small town in beautiful North Carolina. We came from a family of factory workers and farmers because that was about all there was to choose from that far out in the country. TO find out more go to www.discovershortsales.com