Lenders don’t care about accepting a short sale, they would much rather just foreclose the house.
Even know that agents nation-wide close 10% of their houses on short sales, this myth has been spreading and has gained a lot of attention. I’ll be honest with you explaining why 90% of short sales fail. Most people simply don’t know what they’re up against and don’t know who they need to talk to be to successful, and of course when and how to follow up on the short sale.
I’ll be the first to admit that short sales, nationwide, have such a low success because of lack of knowledge. If you go to your MLS, you’ll notice that 10 to 20 percent of houses were sold on short sales. Don’t forget that these statistics have nothing to do with the actual success of short sales or banks’ willingness to accept a short sale. It’s simply because agents go about the short sale process all wrong. With proper guidance, your short sale can easily be a success.
Thinking back to the market in 2003, lenders had no problem foreclosing a house. They could do it because they knew that they would get the late payment cost back, the principal balance and turn around and sell the house within 60 days since the market was so demanding.
However, in today’s market, lender try as hard as they can to keep houses from reaching foreclosure. The philosophy “The first loss is the best loss.” is used by major lenders. Though this philosophy doesn’t deal with any kind of low loss mitigators.
When talking to a mitigator, you need to keep in mind that they are an hourly employee, and also someone who really doesn’t understand what is good for the bank. In most cases, it’s always best to have the conversation escalated to someone who will know more about what you are offering, and produce a much more successful outcome.
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