Fairfax VA – I recently wrote a post about how banks will lose more money through a foreclosure than a short sale. In fact, a recent study by Boston Consulting Group showed that a lender will net 20% more money on a short sale versus a foreclosure.
The reason for this is because short sales typically sell for a higher price than a foreclosure.
One reason is because the home owners usually take care of a home that is bound for a short sale than a home that is facing foreclosure.
Each foreclosure doesn’t just affect the lender and the home owner involved, however. The truth is that they have a profound effect on the national economy.
After all, most economic experts will tell you that housing is one of the biggest drains on today’s economy. Thus, every single foreclosure that sells for less money than it’s worth just pours more salt in the wound.
Plus, foreclosure takes 18-24 months to complete.
And for every month that a foreclosed home is on the market, the banks lose more and more money from lost interest and property tax revenue.
This drags down the banks finances, meaning they have less money to lend out, which causes another drag on the economy.
I bet you didn’t know just how much one foreclosure can effect the local, regional and national economy.
That’s why we recommend that Fairfax VA home owners pursue a short sale before a foreclosure.
Short sales don’t stay on the market nearly as long as foreclosures and they often sell for higher prices.
More revenue to the banks means that those banks are willing to lend more money, which will stir activity in the local economy.
Thinking about a short sale? I can help you short sale your property and never pay the bank another penny.
Thanks for reading this,
Thierry is a Real Estate Agent at RE/MAX Premier, and Host of Talk Radio’s, ‘Inside Real Estate’
Phone: (703) 322-0600.
Thierry is an advocate for Homeowners in Distress. Thierry has made it his personal mission to help as many people as possible avoid foreclosure and keep their home.
Thierry Roche specializes in loan modifications and short sales in Fairfax Virginia. Fairfax Loan Modification Help. Fairfax Short Sales. Fairfax Short Sale Realtor. Fairfax County Short Sale Realtor. Fairfax VA Short Sales. Fairfax Realtor.
Copyright 2011 Inside Real Estate, LLC. All Rights Reserved.
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. The views expressed here are Roche’s personal views and do not reflect the views of RE/MAX Premier. This information is provided as a courtesy to our viewers to help them make informed decisions.