Are you thinking about short selling your home? Here is a way that any seller can help with the short sale. First off, the biggest problem is that there is very little accountability in the short sale industry. The banks use appraisers and other people to tell them what a house is worth before they sell it. They will not approve a short sale offer unless the house is selling for close to what these people tell them it is worth.
The bank's use this process to make sure that they are not selling homes for less than they could sell them for after a foreclosure. Here is why there is very little accountability. Very few people ever look at the valuations turned into the bank. The Realtor helping you with your short sale can't access this information. The valuations often have glaring inaccuracies in them.
For example, one property was valued at 375k. Because of that valuation, a short sale offer for 275k was turned down. We can agree that it would be irresponsible for a lender to accept 275k for a house worth 375k. However, the house wasn't worth 375k. It had been on the open market for several months and that was the highest offer received from any home buyer. But it gets worse.
The home ended up selling as a short sale for $235,000. Yes, that bank lost $40,000. But why did it happen? Because someone gave the bank an inaccurate property value. However, that person was never held accountable for their actions. They caused a bank to lose $40,000. But today they are still doing property valuations for banks.
The bank's use this process to make sure that they are not selling homes for less than they could sell them for after a foreclosure. Here is why there is very little accountability. Very few people ever look at the valuations turned into the bank. The Realtor helping you with your short sale can't access this information. The valuations often have glaring inaccuracies in them.
For example, one property was valued at 375k. Because of that valuation, a short sale offer for 275k was turned down. We can agree that it would be irresponsible for a lender to accept 275k for a house worth 375k. However, the house wasn't worth 375k. It had been on the open market for several months and that was the highest offer received from any home buyer. But it gets worse.
The home ended up selling as a short sale for $235,000. Yes, that bank lost $40,000. But why did it happen? Because someone gave the bank an inaccurate property value. However, that person was never held accountable for their actions. They caused a bank to lose $40,000. But today they are still doing property valuations for banks.
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