The main reasons bank consider Short Sales are as follows:
- The mortgage is in arrears or foreclosure process
- The property is in poor condition
- The homeowner has suffered hardship and can no longer afford the payments
- The area of the neighborhood has depreciated in value
- New homes in the area are being chosen over existing homes
- The bank’s shareholders are concerned when there are too many defaulting homes in the books
- Some banks are required to prove a loss each month
- Some banks are required to have an amount equal to or up to six times the retail value of each REO “on-hand”
- An REO is a liability, not an asset. Too many liabilities will cause any business to go under if not dealt with properly and quickly
To learn further if a short sale is acceptable for you, consult with Cesi Pagano and Associates directly.
Cesi Pagano DRE 01043716
Keller Williams Realty DRE 01934115