Mortgage News Daily issued a report that takes A Look at Foreclosures Costs.
The staggering fact is this:
The cost of a foreclosure, it turns out, is pretty staggering and we wonder why lenders and the investors they represent aren’t jumping at a solution, any solution, that would allow them to avoid going to foreclosure whenever possible.
According the Joint Economic Committee of Congress, the average foreclosure costs $77,935 while preventing a foreclosure runs $3,300.
This suggests that lenders would be more open to prevention, or even a short sale. However, the last few short sales that I’ve work, the lender’s bureaucracy eventually caused the short sale to fail.
We were looking at a house with ARV of 350. The problem we had was the lenders BPO contact failed to return phone calls to schedule access to the property. We were working this short sale for 7 months . . . .
It wasn’t for lack of trying. The house was foreclosed on, and it was listed in the MLS for 149.