When will the lender agree to a short sale procedure?
Answer:You will most probably have to hire a loan officer to walk you through the standard mortgage short sale procedure to avoid a foreclosure.
What is a home loan short sale at all?
Short sale is when the lender accepts less than what is owed as mortgage debt satisfaction. Warning: a short sale doesn't mean that the lender won't choose to file a deficiency judgment for the remaining amount.
When does the lender agree to a mortgage short sale process?
A lender sometimes would rather go through the short sale procedure to avoid keeping bad loans on the books. However, the borrower will need a good reason for the lender to agree to a short sale - illness, unemployment or family matters may be considered and pointed out in the hardship letter.
Also, the lender's decision to accept a short sale will depend on whether it is cheaper to fix and sell the property and if the lender's got too many properties on short sale.
Our advice: Be sure to ask your lender about FHA loans. FHA loans have very competitive interest rates because the loans are insured by the US Federal Government. Even if you have had serious credit problems, such as bankruptcy, it is easier to qualify for an FHA loan than a conventional loan. Also, taking an FIXED rate loan while the interest rates are still low is a smart idea. Check your eligibility here:
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Common misspellings: mortage and morgage