We’re starting to see more and more banks wake up to the fact that Short Sales are much better financially for the bank than allowing a home to go to foreclosure. Our teams has seen first hand evidence of this on Denver Short sales, but it looks like some national statistics and research are finally being released that will bolster this point.
DSNews.com has an article detailing research done by McGeough Lamacchia Realty that documents this:
On average a home sold through short sale brings a 24 percent greater return than a foreclosed property, according to recent findings from McGeough Lamacchia Realty.
“This means the banks are losing an average of $43,000 for every foreclosure sale compared to what they would have made in a short sale,” said a blog post on the company’s website.
The firm reviewed prices for short sale and foreclosure sale properties in 2010 and 2011 in Boston, Phoenix, Tuscon, Southern California, and Southwest Florida.
Yes, you read that correctly: the banks are losing on average $43,000 for each foreclosure compared to a Short Sale. The obvious question then becomes, “Why don’t banks work harder at making a short sale transaction successful?”
As a REALTOR, all things being equal, I’d much rather go through the process of helping a buyer with Denver foreclosures rather than Denver Short Sales. The transaction is quicker, cleaner and has a much higher probability of actually closing for my client.
Hopefully reports like this one will have some sway and we’ll see a whole lot more common sense from lenders.
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