Mortgage lenders would rather accept a short sale offer rather than face foreclosure. In the same way, homeowners would rather request for a short sale rather than mess up their good credit record. So when a borrower or a homeowner is faced with a mortgage payment that is higher that actual value of the property, a short sale is more favorable than facing foreclosure.
However, not all banks or mortgage lender will agree to accept a payoff lower than the original amount borrowed. But because they want to avoid facing foreclosure. they are more likely to accept the offer.
Remember that short sales are different from foreclosures. The latter is forced by a lender while the former is agreed by the lender and the borrower. And there are instances where the lender refuses a short sale because the of the buyer’s offer or due to the high closing costs that can result to lower new proceeds in the lender’s side.
When a homeowner makes a short sale offer, the bank will have to see other prices of similar homes in the area and this is the reason they don’t accept just any offers. They want to avoid the expensive process of foreclosure because that would mean they have to do all the maintenance and repair when they put the property back to the market. What’s worse, they would have to price the property according to the present rate which could be really low at that time.
Many homeowners are too afraid to ask their lenders about ways on how to avoid ending up just like what happened to Purcellville VA foreclosures. In fact some don’t even know that short sale exist so they end up with lenders foreclosing their homes and their credit record ruined. However, the homeowner must have all the documents that can prove s/he is no longer capable of paying the remaining mortgage balance for a bank to accept a short sale offer. In other words, there has to be a valid reason or some kind of hardship that will convince the bank to allow a short sale.
For a short sale offer to be accepted, a homeowner must see to it that the property has been estimated, s/he has passed a hardship letter and the most important is that s/he must communicate with a mortgage lender to negotiate the short sale. By doing this, you’ll have high chances of getting approved of short selling for home.
You’ll have high chances of getting approved of short selling your El Paso Real Estate if you take note of the following. To summarize, a borrower or a homeowner should see to it that the value of Stamford CT real estate has been estimated, that s/he has passed a hardship letter and the most important is that s/he has communicated with a mortgage lender to negotiate the short sale.