Posted on: 07th Jun, 2009 03:28 pm
Does my lender have to approve the short sale before i can do it?
Hi Jerry, Yes they must approve the short sale once approved then you can short sale the house.
jrobinson
Welcoem to the forum.
A short sale is a sale of real estate in which the proceeds from the sale fall short of the balance owed on a loan secured by the property sold. In a a short sale, the bank or mortgage lender agrees to discount a loan balance due to an economic or financial hardship on the part of the borrower. Thsi negotiatoin is all done through communication with a bank. The home owner sells the mortgaged property for less than the outstanding balance of the loan, and turns over the proceeds of the sale to the lender, sometimes in full satisfaction of the debt. In such instances, the lender would have the right to approve or disapprove of a proposed sale. The current circumstances influence whether or not banks will discount a loan balance. These circumstances are usually related to the current real estate market and the borrower's financial situation. This is normally done to prevent the forclsosure.
It costs more to doa foreclosure process for bank than do a short sale.
Good luck and feel free to ask
Welcoem to the forum.
A short sale is a sale of real estate in which the proceeds from the sale fall short of the balance owed on a loan secured by the property sold. In a a short sale, the bank or mortgage lender agrees to discount a loan balance due to an economic or financial hardship on the part of the borrower. Thsi negotiatoin is all done through communication with a bank. The home owner sells the mortgaged property for less than the outstanding balance of the loan, and turns over the proceeds of the sale to the lender, sometimes in full satisfaction of the debt. In such instances, the lender would have the right to approve or disapprove of a proposed sale. The current circumstances influence whether or not banks will discount a loan balance. These circumstances are usually related to the current real estate market and the borrower's financial situation. This is normally done to prevent the forclsosure.
It costs more to doa foreclosure process for bank than do a short sale.
Good luck and feel free to ask