Why would a lender agree to a short sale?
There are various reasons why a lender may agree to a short sale. For example, Senate Bill 1137 (Effective July ‘08 & Revised September ’08: http://tinyurl.com/Bill1137) imposes strict requirements on lenders prior to exercising their right to foreclose. Foreclosures take time, and as we all know, time is money. The expense to the lender is another factor. Foreclosure costs may include: internal fees and expenses, eviction, repairs and maintenance of the property, security, as well as Home Owners Association (HOA) dues, and utilities. These factors, combined with the federal and state government’s push to hault foreclosures, make it easy to see why a short sale may be in the lender’s best interest.
