Why would my lender accept less than I owe on my home?

Ask The LA Realtor-Why would my lender accept less than I owe on my home? Lenders are in business to lend money, not to own real estate. They do not want the expense of the foreclosure process and/or the holding and maintaining of the property.

By agreeing to a "Short Sale" they will actually save money by not completing the foreclosure and holding the property in their portfolio.

This is why more and more homeowners looking for home foreclosure alternatives are turning to a short sale

 

Still have questions? Ask The LA Realtor Blog or Tweet Your Question on Twitter @Asktherealtors for no nonsense and no "mumbo Jumbo" answers.

Copyright © 2011 By Stephen Munson & Luis Montejano- Munson Realty| Ask the Realtors-Ask The LA Realtors|ask the Realtors,ask the la Realtors|Why would my lender accept less than I owe on my home?|Short Sale,home foreclosure alternatives*.

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Seller Ask:Is it smart to "test" the market with a higher offering price

Is it smart to "test" the market with a higher offering price at first?

Answer: It does neither you nor your agent any good to list a property overpriced. But why not test to be sure? Here's why: Because you will lose precious market time and you risk an over all lower final sales price.

You can not ignore the comps (recent comparable sales) and your Realtors advice. Testing high signals a greedy seller and buyers have way to much to choose from right now. They will wait and hit you below the belt once you finally drop your price.

Overpriced Homes-Sell Slower, For Less and often not at all. I maintain that you’ll shoot yourself in the foot by overpricing your home. Your home will almost always sale at or above market value by pricing at or below market value.

Whatever your Real Estate question is, we’ll get it answered with a very “consumer” friendly –no Real Estate “MumboJumbo”-response.

Have questions about?

• Buying a home


• Selling a home


• Avoiding foreclosure


• Home loans

Anything to do with the real estate process, ask away, there are no stupid questions and we’ll do our best to give you smart answers!

*And now for the disclaimer: All markets are different and each state has different rules and laws. We are in Southern California so the answers you get will likely be more related to our market. All of that being said: We are not giving legal advice and you should always consult with your Realtor, Lawyer or any other licensed professional that is serving YOUR best interest.

**One more thing, are not here to sell you anything. So if you don’t like that we said you need to “ditch the canary yellow and re-paint your house before you put it on the market” or “your low ball offers are insulting the seller”…tough! Get over it…this is business baby and our goal is to help you.