|
Q.Why would my lender agree to a short sale?
A.Your lender, whether a bank or a mortgage lender, won't consider a short sale until their inventories of property have reached a certain point. Most banks have insurance to cover their losses on foreclosed properties, but there is a limit to the amount of non-performing assets they want to hold on their balance sheets. Once this limit is exceeded, the bank will have a stronger incentive to get rid of properties at discount prices. By avoiding the foreclosure process, the lender can also save a tremendous amount of money (e.g. costs, attorney's fees, delays due to bankruptcy filings, damage to the property, taxes, etc.). Unfortunately most negotiators do not effectively reach the right person to discuss the potential short sale, and those that do often fail to properly prove how a short sale will actually benefit the bank and cut its uninsured losses.
|
|
