Can a mortgage lender accept a short sale?

HomeCan a mortgage lender accept a short sale?
Can a mortgage lender accept a short sale?

A lender might accept a short sale with the property worth less than the balance of the mortgage, if the borrower cannot continue to make the monthly loan payment, does not have enough money to pay back the full balance of loan and needs to move out of the property. Is the mortgage lender’s approval necessary in a short sale?

Q. Can you offer less on a short sale?

If the list price is too low, the bank will reject the short sale; a low list price could be a strategy used by the listing agent and seller to entice multiple offers on the short sale. The short sale bank will hire a Broker Price Opinion agent and pay that agent less than $100 to produce a BPO.

Q. How bad is a short sale on your credit?

A short sale will blow a hole in your credit score, dropping it as much as 100-150 points, depending on where you started. The higher your credit score, the more you will fall.

Q. What is the average discount on a short sale?

Homeowners have always had to sell their homes at sometimes-steep discounts to avoid foreclosure. Short sale homes are a hopeful home buyer’s aim in many cases, as well, because of the average 21 percent sale discounts they generate.

Q. What does it mean when a house is short sale?

What is a short sale? A short sale occurs when a property is sold at a price lower than the amount the homeowner owes on the mortgage, and the homeowner’s mortgage lender (s) agrees to the “short” payoff.

Q. Can a short sale loan lock in interest rates?

Many lenders will not lock in a loan rate for longer than 30 days without charging you additional fees for the privilege. Some won’t give you a loan lock until you get short sale approval. If your interest rates bounce upward, you could find that you are no longer qualified to buy that home.

Q. How long does it take for short sale loan to close?

Try to buy below your means. Don’t stretch your preapproved loan amount to the max. Leave yourself some flexibility. Many short sale banks want to close within 30 days of short sale approval.

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