Solving the Knoxville Foreclosure Crisis
One Homeowner at a Time

Rick Smenner

RE/MAX Preferred Properties
[email protected]

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Knoxville Short Sales Save Lenders Money

We ran some numbers on why a short sale reduces a lender's losses by 20% compared to a foreclosure.Knoxville Short Sales Today I am going to add all the numbers together. That way we can see exactly how much this lender lost by not accepting the short sale. Click here to discover how other sellers successfully did a short sale and avoided foreclosure. I am using the real life example of a short sale that was listed for sale for $425,000. The lender turned down an offers for $385,000 and ended up selling the home for $230,000. Let's add up the costs. $155,000 in sales price loss. ($385,000 minus $230,000.) $30,318.75 in lost interest income. ($385,000 lent at 4.5% interest over 21 months.) $11,411.89 in property taxes that would have been paid by the short sale buyer, but instead were paid by the lender. ($6,521.08 annual property taxes over 21 months.) Cash from HAFA Short Sale$3,000 in estimated foreclosure costs. (This is to pay the foreclosure attorney and the court costs.) $4,200 in Homeowner's Insurance. ($200 monthly times 21 months.) $203,930.60 in total lost because they didn't accept the short sale offer. Ouch! I don't care how rich you are (or how many bailouts you received), that is a lot of money. Yes, these numbers are correct. Real estate is an expensive business. It costs a lot of money to own and maintain a house. Just look at how much you spend on your mortgage, property taxes, homeowner's insurance, maintaining your house, and mowing your yard. Now multiply that by 21 months. Make sense? Thinking about a short sale? I can help you short sale your property and never pay the bank another penny. Send me an e-mail at [email protected]. I will contact you for a free consultation. When we talk, I will explain how the process works in detail and answer any questions you may have. Or, if you prefer, you can call me at (865) 696-9002 Thinking about a loan modification? Our Knoxville loan modification kit has the instructions you will need to get a loan modification approved with your bank. Click here to request a copy.

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