Lenders aren’t in the real estate buying and selling business. That’s why they may accept a short sale on your property when you fall behind in payments.
House Selling Tips – Mansfield TX: Some lenders are willing to take you up on a short sale offer because it is better than what they’ll receive if they foreclose on you and put your house up for auction or sale. Lenders and banks are definitely not in the real estate business and that’s why many of them actually approve applications for short sales.
The bank can accept less under certain circumstances. They usually will consider a short sale for a homeowner that has run into financial difficulty through situations outside of their control
Short sales are simply when you are in default or are headed that way and can find a buyer who will buy your house, but for less than what you owe on the mortgage. The lender may accept, for example, $249k from a buyer when your mortgage balance might be $260k. The bank can accept less under certain circumstances. They usually will consider a short sale for a homeowner that has run into financial difficulty through situations outside of their control. Those reasons may be due to job loss or cut in hours or pay, an accident that involves great expense and inability to work, a serious illness in the family, or a death in the immediate family. You aren’t likely to be approved for a short sale if you have run up your credit cards to the max, have a huge IRS tax bill, or you just want out of the contract. The reasons for acceptance are strictly adhered to.
A lender does not desire to take over your property and sell it. They only want what has been borrowed from them. In other words, they aren’t set up as real estate dealers and would rather not repossess your home. They have no one to do the upkeep, and once it becomes run down they won’t get a very good price for it. That’s why they often take short sales instead of foreclosing if the circumstances are right.
The lender may accept, for example, $249k from a buyer when your mortgage balance might be $260k.
The short sale process can be tricky to negotiate.
The reasons for acceptance are strictly adhered to.
The short sale process can be tricky to negotiate. Real estate investors that specialize in short sales know how to talk to the lenders, what paperwork needs to be submitted, and can therefore help you by offering to buy your house for a short sale amount and then approaching your lender with the proposal. You may still end up leaving your home, but it’s much better to leave on your terms and in your own time than when the marshal comes knocking on the door to evict you. A short sale can also help to preserve your credit, which will be needed when you move on.