Are lenders of foreclosed homes willing to short sale?

To my surprise, after reading an number of agent and buyer emails, lenders are showing limited interest in accepting “short sale” offers. To explain quickly, a short sale, is asking a foreclosing lender to accept an offer and “payoff” his mortgage with a sale at a price that is “short” of the actual balance to help the owner out of his foreclosure.

One would think with all the pressure on the lenders to “work with” people, they would. Not true. Mortgage banks historically are the least likely to work with folks in foreclosure. The loss mitigation departments are currently so over-worked and reviewing a short sale application takes and enormous amount of time and effort, many are just ignoring them preferring to simply transfer the file the attorney’s office.

It’s not right, but it’s happening…

---

Feel free to comment on my answer, add your take or experience in the Comments Box below….however, to ask your own question in this category, return to the previous page.