Why would a bank agree to a short sale and hold off on filing foreclosure when it may take months or even a year to find a buyer and the bank losses money (interest) during that time?
The answer is that a bank may accept the loss and agree to a short sale because it believes that it will lose less money by accepting the short sale. To improve your chances and encourage your lender to accept a short sale you need to: 1. Have a buyer already lined up when you ask your lender to agree to a short sale. This will eliminate concerns your lender may have about whether or not you can find a buyer. 2. Have a buyer that can pay cash (either from cash on hand or money that is readily available from an established source) and does not need to obtain a loan to buy your house. When a buyer has to obtain a loan, there is a question as to whether or not the loan will be approved. Your lender does not want to hope that your buyer can buy. Your lender wants to know that your buyer can buy your house. 3. Have a set price so that your mortgage lender will know how much that your proposed buyer is going to pay for your house. Normally, before agreeing to a short sale, mortgage lenders w
