Why would any bank/mortgage company agree to a Short Sale?
There are Several reasons why a mortgage company would approve a Short Sale payoff, including the following: Legal Issues – Lenders have come under increasing 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 compromised solution. Wall Street – Mortgage lenders rely heavily on the ability to package and sell loans on the secondary mortgage market. They must sell these bundles of loans in order to raise funds, which they in turn put back to work in the form of new loans. 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 and resold. It is expensive to manage real property asset
