US mortgage lenders and investors are beginning to realize what the real estate industry has known for a long time: short sales are MUCH less costly than foreclosures. Despite this reality, banks and their loan servicing arms have traditionally embraced with the well-understood foreclosure model, particularly in states like California where trustee sales speed the process considerably. Still, foreclosure sales are often fire sales, with homes often requiring considerable repairs and generally better suited for investors than homeowners.
A short sale, on the other hand, usually involves a homeowner for whom things haven't gone as hoped, but still desiring to protect their credit. It requires a great deal of cooperation between buyer, seller, the Realtors of each, servicer, and lender/investor. The lender/investor's cooperation, typically the missing link in achieving a successful short sale, is made all the more difficult by the existence of second mortgages on the property, particularly if the first and second loans are held by different parties.
But short sales really are the right way to go if lenders and investors are ready to get serious about solving their mortgage portfolio problems - - and putting homes in the hands of owners who can afford them - - anyime soon. - David
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment