Question:

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.

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