As everyone is well aware of, our economy is not in the best place at the moment. 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.
With all the news about who loses money when a bank forecloses on a property 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 a short sale transaction 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.
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
By Donna Tashjian
with information from
http://www.RealEstateBusinessmentors.com
