Question:

How can the buyer get lender short sale approval?

Answer:

There is no guarantee the buyer will obtain the lender short sale approval even if the buyer provides a high bid and provides all the paperwork and keeps in close contact with the loss mitigation department.

In reality, a short sale is only approved when the seller has a lot of equity and the lender will recuperate their money.

If there is little or no equity and the lender cannot recover their losses, they would like to wait and see whether a higher bid won't come in. Even if this is highly unlikely, large lenders with huge portfolios swelling with foreclosing homes are suffering huge losses and are being extremely careful approving short sales.

At the time a lender short sale approval is hard to obtain, lenders are more likely to suggest loan restructuring to cut their losses.

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Common misspellings: mortage and morgage