Why Banks Want You To Fear The Short Sale Progression
We wanted to talk to you at the moment regarding something that is very genuine. We all possess deep rooted fears in life. When I go on listing presentations I talk to individuals about their concerns in the short sale world. Present are lots of fears that people have with a short sale. They include fears regarding what a short sale will do to their credit. They fear what individuals may think of them for doing a short sale. Their neighbors might consider that they are taking the easy way out. They in addition have fears from the bank. What will the bank do to them? Will the bank sue me for the deficiency or decided to foreclose. One thing I like to remind my clients of is that the fear will get to you if you allow it.
In this market, we have observed a 55% depreciation rate. What is astonishing about this is that home owners are still making their payments to the bank on a higher loan amount than what their home is truly valued at now.
I would like to take your fear away from you by letting you know that the bank is making money nevertheless. We sit in a gorgeous home in Gilbert with a loan at $450,000. The current value is just $225,000. If someone was to purchase my home at the moment, their mortgage payment would be approximately $1700. Our existing mortgage payment is around $2800. So, rest assured that the banks are still making their riches.
The government and all of these commercials are talking about how they are helping home owners modify loans. I am still making my payments, but I have a sour taste in my mouth about it. How many folks have you talked to that have truly had a loan modification go through.
The banks should do something about this. They could reduce the loan amounts to what the proper value is worth and we would not have a short sale market. The distressed marketplace in Phoenix ranks amongst the highest in the country. Don’t be fearful of the short sale. This is the bank’s only solution to the problem.
Get more help from short sale Realtor, Steve Horn, at Homes by the Horn presented by the Steve Horn Team, Short Sale Specialists of Arizona
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