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Have You Ever Wondered, "Why Would A Lender Agree To A Short Sale?", Santa Monica, CA Series 7


As an agent I can tell you that houses sell better with someone living in them. Even if it’s not an entirely clean house. It has a warmth and personal feel to it. Vacant houses tend to have a cold empty feel to it. In terms of a business decision it’s better for the lender to work with a homeowner doing a short sale. See below for more info, Series 7, from CAR legal issues on short sales.

Q 7. Why Would A Lender Agree To Accept A Short Sale?

A Lenders may have ample incentive to negotiate a short sale with a distressed borrower. For example, should the lender take back a property pursuant to a foreclosure sale, the lender would become responsible for a variety of costs, including property maintenance, utilities, HOA fees, and might risk destruction of the property by vandalism. Furthermore, lender-owned properties (REO) may take a long time to sell, in part because so many REO properties are now for sale.

A lender will typically evaluate the financial situation of the borrower as well as current market conditions to determine whether or not to agree to a short sale. It is really a business decision for the lender to determine whether it would receive more money by accepting the short sale, or completing a foreclosure, reselling the property, and pursuing personal liability (i.e., deficiency judgment against the borrower and/or claims against guarantors, for loans on which those remedies are available.)

Luxury Short Sale Designation, Santa Monica, CA
Posted Thursday Jan 26