By Tom Branch, on June 11th, 2010 
It may seem counterintuitive for a lender to go along with a Short Sale since they are legally entitled to pursue the full balance of the loan. Yet, more and more lenders are approving Short Sales.
Lenders are painfully aware of just how bad the current mortgage crisis and resulting foreclosures are. They know the disturbing reality is that a large number of distressed borrowers will helps the lender look good on paper since the house never gets listed as an actual foreclosure. Second, while the lender is taking a loss, the loss is far less than it would be in a foreclosure situation.
On a recent industry call with a major lender, they disclosed that the average recovery in a Short Sale is 60 cents on the dollar. Now before you get all excited that you can buy a property for 60 cents on the dollar, let us explain how they arrive at that number.
Let’s assume that a borrower owes $200,000 on a property. The market value is set at $150,000 by the appraisal or Broker Price Opinion and the property sells for $140,000, which is 94 percent of market value. The closing costs come to $14,000, leaving the lender a net of $126,000. $126,000 is 63 percent of the $200,000 loan balance.
With a foreclosure, the lender only recovers about 30 cents on the dollar. Which would you choose? The numbers make this a no-brainer.
The other issue with foreclosures is the impact they have on neighborhoods. If a neighborhood experiences a number of foreclosures, the property values in that neighborhood drop as well. Why is this important to the lender? They may be holding other mortgages in the same neighborhood, and a foreclosure drives down the value of those houses as well. They’re poisoning their own portfolio!
Bottom line is if the numbers work for the lender, they are very likely to approve a Short Sale. It’s the lesser of two evils when compared with foreclosure.
By Tom Branch, on June 11th, 2010 
This is Part Three of a series covering the Eight Personal Qualities for Success.
In Part Two I covered, The Ability to Focus and Determining the Price You’ll Pay. In Part Three, I’ll discuss Self Responsibility and Be Committed.
Self Responsibility
You are totally responsible for the success of your business and your life. There are no excuses. There may be set backs or economic downturns, or problems that affect your business.
Your suppliers or vendors may discontinue making or providing your favorite products or services, change the way they do business with you, or even merge with another company.
Economies change, corporate policies change, and prospects don’t buy from you, and the weather is too hot or too cold.
While those things definitely have an impact on you, the way you do business and the sales you make, it is important to realize that those things are beyond your control, and it’s up to you, and you alone, to accept responsibility for the success of your business.
No matter how bad you might have it, no matter what difficulties or challenges you might encounter, let me assure you that there are many people who have had difficulties and challenges far greater than any you are ever likely to encounter, and somehow, they manage to pull through. And you can do the same.
Here’s a little credo that can help you. It contains just 10, two-letter words:
“If it is to be, it is up to me.”
That simple one line sentence says it all. It places the responsibility exactly where it should be… directly on your shoulders.
Be Committed
Make a total commitment to your success. Once you have made the decision to be in business, be in that business. Jump in with both feet. Don’t let anything hold you back. Even more than getting into the business, see that the business gets into you.
Make a commitment that you are going to succeed, no matter what.
Don’t try to work two different jobs or projects at one time. You can’t do either of them justice, and you’ll likely end up frustrated and broke, and never know whether or not you could have been successful.
In Part Four of the series, I’ll cover The Extra Mile, Control Your Time, and Persistence and Determination.
By Tom Branch, on June 11th, 2010 
5 Bedrooms | 2.1 Baths | 2-Car Garage | 2444 SF
Homes For Sale – Springtown, TX. Custom country living on acreage with easy access to the city. Gourmet kitchen with concrete countertops overlooks family room with fireplace. Downstairs master suite with jetted tub, separate shower, and large walk-in closet. Extensive updating including hardwood floors, bathroom tile, and designer paints. 5th bedroom could be second master or another living area. Mud room connects garage and main house. Back yard is perfect for entertaining.
Click here for current status, pricing, details and photos.
Source: NTREIS | Photo Credit – Tom Branch
By Tom Branch, on June 6th, 2010 
4 Bedrooms | 3 Baths | 2-Car Garage | 2118 SF
Homes For Sale – Fort Worth, TX. Preforeclosure. Former Merrit model home on 1 acre. Open kitchen with breakfast bar, Corian type counters, and black GE appliances. Comfortable living room with wood-burning fireplace, crown molding, and pre-wired for surround sound. Elegant formal dining. Spacious master suite. Master bath with garden tub, dual vanities, separate shower, and walk-in closet. Separate guest suite with private bath. Remaining two bedrooms and bath split.
Click here for current status, pricing, details and photos.
Source: NTREIS | Photo Credit – Tom Branch
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