February 2012

Found 1 blog entry for February 2012.

A 'short sale' is a term that is used to describe a situation where an owner of a property agrees to sell a property for less than they owe on the property, and the owner asks their lender to accept whatever is left over after all of the selling costs as complete payment of their mortgage. 

Why do Lenders agree to allow short sales?
It might seem like it makes little sense for a lender to accept less than they are owed on a property at all, but when a lender is faced with a situation where they either accept less for the property than they are owed or foreclose, a lot of the time it makes financial sense to do so.  By the end of a foreclosure proceeding, a house could have been sitting vacant for a long time before the lender/investor/agency receives

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