Freddie Mac Says: Rejecting a Short Sale Could Cost the Bank $50K Per Home

Freddie Mac CEO Ed Haldeman said Monday that last-ditch tactics to prevent foreclosure, such as short sales, have risen drastically as the government scrambles to fix the housing mess.

Foreclosure alternatives like short sales and deeds-in-lieu help borrowers to avoid the stigma of foreclosure, shorten the waiting period before they can buy a new home, and may inflict less damage on their credit reports,” Haldeman said.

Haldeman said banks lose more than $50,000 per foreclosed home or as much as 30-to-60% of the outstanding mortgage.

One in every 31 Nevada households received a foreclosure notice during the first quarter, more than double the national average of one in 80. Home prices there fell 12% between March 2009 and March 2010, vs. a national decline of under 1%.

About Stout Law Firm

James Stout has practiced law in Orange County since 1995 and is highly regarded by the business community. He has passed three bar exams, California, Arizona and Nevada.
This entry was posted in Foreclosures Short Sales Mortgage Litigation, Uncategorized. Bookmark the permalink.

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