Globella Buyers Realty > Resources > Short Sales > Why Do Banks Even Consider San Diego Short Sales?
Why Do Banks Even Consider San Diego Short Sales?
Banks do have another option when considering whether or not to approve a short sale in San Diego. If the homeowner is in default, the bank will have the option to foreclose on the homeowner at some point and take the property back (and sell it). If the homeowner is not in default, the bank has the option to not approve the short sale and keep receiving monthly payments as usual (hypothetically). So, what's in it for the bank to approve a San Diego short sale?
According to REBAC (The Real Estate Buyer Agent Council), most banks lose on average $40,000 or more when they foreclose on a property and sell it as an REO (Real Estate Owned) listing. There may be repairs involved. The home value may be declining every month it sits on the market unsold. There may be other factors involved. In many cases, the sooner the property gets sold, the greater the recovery will be for the bank(s) involved. It is also a known fact that San Diego properties tend to be more marketable when they are furnished than when they are vacant. A San Diego REO is almost always vacant, while a San Diego short sale is most often furnished. In fact, many banks consider foreclosure and selling an REO property as their worst option. You will find that many banks are open to considering short sales and even motivated to get them approved. However, you will also find that the process takes much longer than a normal transaction. There are more specific things that banks must consider when analyzing a San Diego short sale package.
Your local San Diego marketplace may have short sales for you to consider, although short sales are not right for every San Diego home buyer. Consult with your San Diego real estate exclusive buyer agent to make a wise decision (based on your own specific circumstances) whether or not to pursue San Diego short sale listings as viable options for your San Diego home purchase.
Justin Gramm is the founder and principal broker of Globella Buyers Realty, your San Diego Exclusive Buyer Brokerage. He also writes a blog, "For San Diego Home Buyers."
Exclusive Buyer Agents do not list homes for sale and never represent sellers. They have no "inventory" to try to sell you. They can represent you in purchasing any home. They are specialists at representing buyers only on the buyers' side of the transaction. Exclusive Buyer Agents work to get buyers the best price and terms when they buy a home.
If you have excellent credit and plan to buy a home or condo in San Diego County within 90 days, contact Justin Gramm to hire an agent on your side of the transaction. Call Justin at (858) 437-2662 or E-mail.
More about Justin Gramm on Google+.