Concepts of Lender Discounting

Many will see that more components are being added to short sale packages with the 1st lender than the 2nd mortgage holder.  The packet will  include a list of concerns:

• Does the homeowner truly deserve a short sale?
• Is it in the bank’s best interest to take a short sale or reposses it and sell through a realtor?
• Are there hidden factors, that may affect the ability to recoup a loss assuming a lender must repossess.

The lender will evaluate the following to accept the short sale or repossess the property?

• How many properties does the lender currently have in default?
• How flexible is the investor backing this loan?
• Is a third party servicing this loan?
• What is the demeanor of the knucklehead in loss mitigation with whom you are dealing?

Don’t expect a lender to accept a discount just because the price sounds good to you.  If the lender thinks they can get a higher payoff by taking back the house the lender will turn you down.