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Is the mortgage lender’s approval necessary in a short sale?

April 26, 2017Approval Lender mortgage necessary sale short

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Is the mortgage lender’s approval necessary in a short sale?

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Yes, because in a short sale, the mortgage lender will be receiving less than the loan amount it financed for the property. The lender needs to verify that the homeowner is no longer capable of paying the mortgage and determine if a short sale is less expensive than foreclosing on the property.