If a Bank Forecloses, They Loose More Money

Here is a little known fact Banks  lose more money whenever they reject a short sale and foreclose on a home. I am sure you are wondering why. Let me explain.

Most short sales are still owner occupied. As you probably know all bank foreclosure properties are vacant. A vacant home is more liability, they are often broken into and vandalized causing very costly repairs and if they are not repaired the home sits vacant for long periods of time and it will begin to deterioate due to lack of normal maintenance. If they are repaired then the bank looses more money on repairs and as long as the home is vacant they continue to loose money and therefore the investors or stockholders the bank answers too is not happy.

An owner occupied home looks like a home. The furniture and appliances are setup in their proper places. The house is clean and kept up on. Here is something else that people do not understand about short sales. All banks and servicers have a fiduciary duty to the investor of the loan.

If they own the loan themselves, they have a fiduciary duty to their stockholders. The duty is to get that investor the most money possible.

So, a lender should accept an offer if it will net the most money for the current market value of the home. Your only job is to prove that to the lender. Here is how we can assure the negotiator that the offer will net them the most money.

Do that by showing them that the property has been on the open market for X days. It is best to be able to show that the house was easy for buyers to see and other agents to show.
Let them know "The agent selling the home is an experienced agent. The house has been on the market for X number of days. I have lived here the entire time and kept up on the house. It looks good or provide them with a list of repairs needed that is still valuable information otherwise they do not know until a buyer performs an inspection and the deal goes down the drain and more money is lost. Let the negotiator know  how many showings  you have had since it's been on the market. Out of that, how many buyers expressed interest and any feedback you have received about the property from prospective buyers.

The agent is doing their job marketing the property. With the current foreclosure case status, the home won't be foreclosed until June or July. When you foreclose on the house, I will move out.

I won't be keeping the house up anymore. The new listing agent will be working on  many other homes and won't be able to do a good job.

Do you honestly think the home is going to sell for more money at that time?" When you ask them that, they won't be able to argue with you.

Thinking about a short sale? I can help you short sale your property and get back on your feet. Fill in the contact form to the right or send me an e-mail at :phillis@txhomerealty.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 (214) 650-5536

Discover how other sellers successfully completed a short sale and request a free consultation by filling in the contact box to the right or you can call me directly at 214-650-5536.

Thanks for reading this, Phillis Nealy.

Phillis is a Real Estate Agent at The Texas Group Realtors.

Phone: (214) 650-5536.:phillis@txhomerealty.com.

A Realty company with Service as Big as Texas

View My homes for sale at http://www.txhomerealty.com/

Phillis Nealy specializes in loan modification assistance and short sales in the Dallas Metroplex..

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 although this does not happen often it is a possibility.

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 or accept a short sale offer. No matter what you or we do, your lender may not approve a loan modification but if you are denied with the new laws they must offer you an alternative such as reinstatement, forebearance, short sale and even a deed in leiu however with a deed in leiu the property must have already been on the market for a minimum of 90 days for most banks and you still have obligations to perform one being still finding your own realtor.

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 until you are approved for the HAFA or the government approval to participate in a short sale program you are at risk of foreclosure. Because we know avoiding foreclosure is so important to any homeowner, we recommend that you contact Phillis Nealy immediately to get started.


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.

This information is provided as a courtesy for professional advise consult with an attorney.