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Why should a lender agree to take a loss on real property?

April 26, 2017agree Lender loss Property

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Why should a lender agree to take a loss on real property?

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The lender will likely take a loss on the property in any case. Besides short sale, loss mitigation solutions usually do not solve the root cause for the borrowers to be in default. The alternative the lender has is to start a lengthy and costly foreclosure process, which will most likely result in a bigger loss on the property.