Mr. Bank/Lenders that are rejecting Short Sales ~ Where is the logic?

Do you get the feeling the lenders are rejecting short sale requests without really thinking about it? And do you wonder why?  I do.  I am finding that the lenders are taking more time to say NO to short sale requests. 

It is puzzling to me because once that home is foreclosed on, it then becomes a REO property which means that it will more than likely sell for less than what the short sale offers were for. 

Below are two lists that will help convince a lender to agree to a Short Sale instead of forcing a foreclosure:

SHORT SALE

1. Fewer legal costs
2. Greater recovery ratio
3. Fewer non-performing loans
4. Lower reserves
5. Existing loans more marketable to secondary market
6. Fewer R.E.O. marketing costs
7. Fewer repairs likely
8. Greater marketability of property
9. Likely greater value from broker price opinion
10. Less negative impact on neighborhood 

FORECLOSURE

1. More legal costs
2. Recovery of lesser amount
3. More non-performing loans
4. Higher reserve requirements
5. Possible negative impact on salability of existing loans to secondary market
6. More R.E.O. marketing costs
7. Negative perception by public
8. Possible extensive property repairs
9. Marketing challenge of extensive inventory
10. Likely lower appraisal value can have negative impact on neighborhood & community 

As a real estate agent, I will list and sell them both or either, but as a realist -- I am looking for some logic to this madness: I am not understanding why the lenders are being so hard nose with short sales when they are a better options not only for the homeowner but for the lender in the long run.  ~~~ I would appreciate anyone shedding some light on this question. I just want to understand this...

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Check out: Real Estate Terms/Definitions.  And take a look at Mother and Daughter Blog and D'Adrea's Mother and Daughter Blog  - for other tips for Sellers and Buyers. I work with my daughter as the Mother and Daughter Real Estate Team at Family Realty Group and we also focus in Short Sales and the Pre-Foreclosure process.  Our consultations are free.  Our aggressive marketing plan includes on-line listing advertising.  If you are thinking of selling or buying a home in Northern California's Central Valley (San Joaquin County CA - includes Stockton, Manteca, Tracy, Lathrop) plus Stanislaus County CA - includes Modesto, Salida, Riverbank) & the East Bay (Alameda County CA - includes Hayward, Fremont, Newark, Union City & Oakland) and surrounding areas give us a call.  If you would like a FREE Home Seller or Home Buyer Handbook, please call us at 866-750-8282 or email at US.

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