Why Would a Lender Consider a Short Sale?
Lenders often entertain such an option for in the long run, they will usually receive a higher percentage of their principal back as compared to forcing the property into foreclosure. Foreclosing on a property is expensive and includes attorney’s fees, repair and maintenance fees, carrying costs and the lender runs the risk of property neglect or damage, and additional delays and costs, and other market losses. Vacant and neglected homes often sell for much less than market value. Today, most lenders won’t commit to a short sale until there is a valid and firm purchase offer in hand from a qualified new buyer, and a knowledgeable agent who can negotiate the transaction. It’s imperative to work with an experienced real estate agent that knows how to prepare a professional and complete short sale package. How is a Short Sale Negotiated with a Lender? Short sales are one of the most difficult and complicated residential transactions. Compared to a regular sale, these transactions require
