Loss-Loans, Am I Over-Simplifying?

 Pardon my absence lately. I've been working like a crazy woman trying to stimulate the real estate economy here in the Big Canoe Community in Georgia. Though we have not decided to print our own money like in Massachusetts, I started thinking heavily about some things that could help me move my Big Canoe real esate listings faster. My latest contracts are two short sales, which I affectionately call my layaway deals due to the incredible amount of time they need to close. Please know that I am as happy as a clam to have these contracts, but this waiting is ridiculous and I imagine also expensive for the banks as well. They say foreclosures cost the banks approximately 70K to process which is why many are willing to consider short sales. So here is my million dollar question:

Why aren't the banks proceeding with short sales by creating for lack of better terms a Loss Loan for the Sellers? This loan would would be to Sellers that will need to take a loss on their homes in order to sell them. I don't come from a financial background but it seems to make sense. Yes, the Seller is a higher risk loan but at least the banks are getting their money faster and the loss is not a total write-off. The Sellers will have a much smaller loan and therefore more financial flexibility to either rent or even purchase a smaller home.

Perhaps there are some banks doing this. If you know of any please send them my way. I'd love to have an option for some of my Sellers and even my Buyers looking to downsize. Let's keep things moving upward!

Karin Elliott
Big Canoe Homes for Sale
Big Canoe Lakefront Home for Sale