Interesting Short Sale Myth: Banks Can Not Write Off Too Much Loss At Once

Interesting Short Sale Myth: Banks Can't Write Off Too Much Loss At Once

We at the Texas Group Realtors receive emails all the time that go something like this "The Bank’s Short Sale Problems are not that simple.

A bank can't afford to write off too much loss at once.  Also, their investors may not approve the short sale, because they can't afford to write off too much loss at once either.

Click on www.dallastxshortsalequeen.com to discover how other sellers successfully did a short sale and avoided foreclosure.

Here is why this flawed assumption is incorrect.  Most of the large, national banks do not own the mortgages they handle.

These entities are accustomed to losses. The other entity that's set up well and accustomed to losses is FHA.

Most of the remaining loans are owned by Wall Street Firms, Pension Funds, and other professional investors. Most of the loans owned by them have already been written down in value dramatically.

Besides, when you push the loss on non-performing loans to the future, the losses are bigger in most cases.

The bigger problem is that the lenders don't have enough staff to process the files. They need short sale negotiators to submit files to the owners of the loans.

A negotiator usually has 10 business days to review the offer and then submit it to FHA.

And then FHA has a 5-7 day turnaround from when she submits the file to them.

Since the lender is not the one who will experience the loss they have no incentive to hire on more staff to process short sale quicker.

Therefore it is the investors who actually take a loss in a short sale and due to the lack of personal with the mortgage servicers is why they take a while to do.

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 beth@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 in Cedar Hill, Desoto, Duncanville, Lancaster and request a free consultation by emailing beth@txhomerealty.com

Thinking about a loan modification? Our Dallas loan modification kit has the instructions you will need to get a loan modification approved with your bank. Email phillis@txhomerealty.com.

Thanks for reading this, Phillis Nealy.

Phillis is a Real Estate Agent at The Texas Group.

Phone: (469) 523-1402.  

A Realty company with Service as Big as Texas

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

Important Notice

Phillis Nealy, The Texas Group, and the Texas Group Realtors are not affiliated in any way, shape, or form with the government.

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.