Short Sales Help, Frequently
Asked Questions Part II

Why Do Lenders Agree to Short Sales?

First, you should understand that not all lenders will agree to a short sale. Their decision depends on a number of factors such as

  • Where Your House Is Located?

  • How Much Loss Will The Lender Suffer?

  • What Is The Possibility That A Speculator/Investor Will Buy At A Foreclosure Sale?

The Most Important Thing Is To
Realize That You Have Options
And Not Give Up Hope!

Every lender has its their own requirements, so this is general information

With this said, banks would much rather agree to a Short Sale than foreclose on your home. Banks are not in the business of owning real estate. They would much rather assist a homeowner in some other options rather than foreclose on your home. A foreclosure costs a bank between $35,000 to $50,000 dollars in legal costs, carrying fees, and other related costs. A short sale is a far better option for the bank.

What Kind of Hardships Do Lenders Consider?

  • Death In The Family

  • Divorce/ Loss Of Second Income

  • Excessive Debt Obligations

  • Inability To Pay An Adjustable Interest Rate That Increases

  • Job Demotion or Promotion Denials

  • Job Loss /Unexpected Unemployment

  • Sudden Illness Or Medical Emergency

  • Unexpected Major Home Maintenance Expense

How Will the Short Sale Process Effect Any Current Foreclosure Actions?

At the time the lender agrees to the short sale proposal, the lender may or may not choose to terminate or postpone the foreclosure. The submission of a short sale package/kit to the lender does not automatically stop a foreclosure action.

Once a lender initiates a foreclosure action, the homeowner should consider that the lender will most likely retain this position until the lender has a signed contract in hand, has agreed to the short sale proposal, and has closed on the sale of the property. A foreclosure may also proceed in the case of subordinate lien holders not having agreed to waive their lien on the property.

Because of the multiple stakeholders involved, and the complex nature of the regulatory environment, qualified, licensed counsel can be critical in taking steps to prevent a lender from not following through with the short sale process, especially in the case of a lender who has the intention of opting for a foreclosure-based resolution

On Average, How Long Does a Short Sale Process Take?

The time period will vary based upon circumstances, although the approval process and time to closing, in many/most cases, is longer than that associated with the sale of a property in a non "short sale" situation

For the rest of this article please go to

Short Sales Help FAQ, Part I

Short Sales Help FAQ, Part III

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Short Sale Help, Part I

Short Sale Help, Part II

Short Sale Help, Part III

Short Sales Help FAQ, Part I

Short Sales Help FAQ, Part II

Short Sales Help FAQ, Part III

Short Sales: Our Services

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