Ridgewood Real Estate Blog

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Short Sale Information: Why would the mortgagee take less than they are owed in a Short Sale?

Why would the mortgagee take less than they are owed in a Short Sale? They have to look at their costs. If this person stops paying their mortgage and they have to foreclose there are more costs than just the outstanding mortgage costs involved. Additional legal fees, fixing up the home to get it ready to sell, back taxes, realtors commission, etc. Some have placed the pricetag for a bank to foreclose as high as $100,000. A Short Sale provides the bank with a buyer today at a price they are willing to pay. The bank can then lend the money to someone else who is in a better position to pay. The majority of mortgages have been sold to investors, many Wall Street firms have huge stakes in the American mortgage industry. If lenders have too many non-performing loans that hurts their ability to borrow future monies. Stay tuned for part 4 ... Why would a buyer purchase a short sale?

For more information on Short Sales, New Jersey Homes for Sale, Bergen County Real Estate or any other topic,

call Sal Poliandro, Realtor, ePRO, SRES at 201-259-2187, or visit our website: http://www.salanddawn.com/

Sal can be reached by snail mail at RE/MAX Properties 81 North Maple Avenue Ridgewood, NJ 07450

Get Educated.  Get Empowered.

For more information on this or any other topic, call Sal Poliandro, Broker Associate, Realtor, Marketing Advisor,

Short Sale Specialist and CDPE, Certified Distressed Property Expert

ePRO, SRES at 201-259-2187, visit our websites: www.SalAndDawn.com or  shortsaleguy.org

Follow me on Twitter: @salanddawn

Sal can be reached by snail mail at RE/MAX Properties 73 East Allendale Road Saddle River, NJ 07458

Comments

Good blog. When a property becomes bank owned the bank has occured twice the amount of costs it would have selling as a short sale, plus they still pay realtor fees and still only sell at below market value.
Posted by Heather the Realtor - Orlando, Lake Mary First Time Home Buyers, Bank Owned Homes (RE/MAX Central Realty) about 4 years ago

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