I currently have a short sale listing. (FYI - in its most basic form - short sale: when a seller owes more than a house is worth and the seller “asks” the lender to take less than is owed, thereby releasing the lien on the property and allowing it to be sold.) The lender with the 2nd mortgage is almost definitely going to be wiped out by the foreclosure (already in process) on the first mortgage. In other words - the 2nd gets nothing - best case scenario. The good news? I currently have a buyer for the property - and the lender in 2nd position says no to the short sale. Here’s what i don’t understand - it’s a credit union - a local credit union - an institution allegedly committed to and invested in the community. Here’s their chance to see that a house does not remain empty, a neighborhood is not further compromised - and yet - their answer is still no. Where is the sense in this? It makes me wonder - as I see more and more people become financially upside down due to the change in the housing market - when will lenders, particularly local lenders, look at the larger picture? I’m interested to know what you have to say about the number of short sales we’re all seeing in the market - email me and tell me your thoughts!
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