Why would a mortgage company agree to accept a short sale?
There are actually several reasons why a mortgage company would approve a Short Sale payoff, including the following: · Legal Concerns: Mortgage lenders have come under legal pressure to work with borrowers to equitably resolve situations where borrowers are unable to meet their mortgage obligation, particularly when the borrower makes an effort to arrive at a compromise solution. · Wall Street is Watching: Mortgage lenders rely heavily on their ability to package and sell bundles of loans on the secondary mortgage market. They need to sell these bundles of loans in order to put the funds back to work by loaning the money again and collect loan fees along the way. If mortgages perform poorly after they are sold it could impact the lender’s ability to sell their loans on the secondary market. A successful short sale gets the loan payoff resolved quickly. · Asset Management Expenses- If a lender acquires a property through foreclosure, the property will be managed until it is repaired an
