The Facts Behind Who Makes Money Off Of A Short Sale Transaction!

As everyone is well aware of, our economy is not in the best place at the moment.  In order for it to be able to recover, it will require money to start flowing freely through it.  Part of how that can be accomplished is when more money is spent on various goods and services.  Every time a short sale is denied and a property goes to foreclosure, there are many providers of goods and/or services that don’t see a penny, and so the economy is unable to receive the boost it needs.

On that note, there has been an abundance of news lately about who loses money when a bank forecloses and takes a property back as opposed to who loses money when a successful short sale transaction occurs.  However, we seem to forget how many people and businesses actually stay in business when the latter occurs.  We don’t realize the complex engine that makes up the real estate industry, and that is isn’t just agents and attorneys that make money, but so many other related industries as well.  And if these thousands of short sale transactions aren’t able to close, then many of these industries are in danger of having to close their doors, and thus the economy suffers.
And so, let’s say for a moment that you’re a professional rehabber or landlord.  Let’s say that that is the business you are in.  You set out to complete a short sale, and purchase a property to either fix up and sell, or rent out, or both.

Let’s not forget that as a rehabber or landlord you are taking a huge risk and are investing not only money, but also your time, energy, and resources into this property!

And so you put in an offer that reflects the market and condition of the property which will allow you to buy the house and either fix it up for sale or lease it out, however the foreclosing lender doesn’t accept the offer.  They are not only keeping you from putting money into the economy through purchasing the house, but they are also preventing every single other related industry from becoming involved and further keeping money flowing in the economy!

What the bank doesn’t realize are all of the facts that go along with the above scenario, such as when a rehabber or landlord seeks to purchase a property by way of a short sale.  Let me break down the facts that everyone, especially the government, is missing!

Here are some of the related industries who make money off of a successful short sale:

• Foreclosing Lender (they make far more in a short sale then when they foreclose)
• Listing Agents and Buying Agents
• Attorneys and Title Companies
• Mortgage Broker/Direct Lender
• Fannie Mae, Freddie Mac, FHA or whomever buys this loan in the secondary market
• The Appraiser
• The Home Inspector
• Plumbers
• Contractors
• Electricians
• Cities and Towns
• Insurance Company
• The IRS
• Accountants
• Marketing Companies (Direct Mail and Signs)
• Printing Shops
• Etc

And so it can be plainly seen that whether it be rehabbers, landlords, or other buyers…that the successful closing not only benefits them, but also all of the industries that are also part of the real estate industry, the foreclosing lender(s), but more importantly…the economy. For more real estate industry articles and videos visit www.RealEstateBusinessMentors.com and www.ShortSaleDailyNews.com.