When a property is deemed to be sold as a short sale and a buyer is ready to buy the property, with the bank or lender having taken the decision to sell the property as a short sale, there are a few factors that might still surprise you, as far as the lender's behavior is concerned.
The fact is that you could be on either of the sides of the business, be a buyer or the seller, and still be surprised about some new developments.
You need to always bear in mind that a short sale is the last option explored by the lender under any circumstances, hence he might try to defer it as long as possible.
This is because the lender is still not sure that what he is doing is right for him, as he shall end up incurring some amount of losses due to a short sale.
A lender is always changing his short sale and loss mitigation process to figure out how he can reduce his losses.
It will change at the decision of those assigned to review the pipeline disaster, which is their loss mitigation department.
And, time and again, the changes usually are not for the best.
They only further complicate the process.
Since the banks are in the business to lend money; they are always exploring options to increase returns or reduce losses, and in the case of a short sale, the latter is more applicable.
In case you are a seller and have found a buyer who is willing to buy from you, the short sale business can never be deemed to be definite until and unless the bank's representative signs on the dotted line, approving the sale.
The lender might also not be ready to take care of the buyer's closing costs as some buyers shall insist upon, and this could end up being the spoiler and kill the deal.
If you happen to be the buyer, the lender might be least concerned about the condition of the house or property, and it is left to you to make sure that you are buying the right kind of property, one which is worth the amount that you are paying for as well as one which has no litigation or any such issues connected to it.
Another important aspect of the business is that the lender might not be willing to divulge much of his profit margin or the market scenario, as far as prices are concerned.
He might always want to make you believe that due to a short sale he is incurring a loss, whereas he would already have made a profit from the loan that you have availed of and have been repaying for the past several years.
The fact is that you could be on either of the sides of the business, be a buyer or the seller, and still be surprised about some new developments.
You need to always bear in mind that a short sale is the last option explored by the lender under any circumstances, hence he might try to defer it as long as possible.
This is because the lender is still not sure that what he is doing is right for him, as he shall end up incurring some amount of losses due to a short sale.
A lender is always changing his short sale and loss mitigation process to figure out how he can reduce his losses.
It will change at the decision of those assigned to review the pipeline disaster, which is their loss mitigation department.
And, time and again, the changes usually are not for the best.
They only further complicate the process.
Since the banks are in the business to lend money; they are always exploring options to increase returns or reduce losses, and in the case of a short sale, the latter is more applicable.
In case you are a seller and have found a buyer who is willing to buy from you, the short sale business can never be deemed to be definite until and unless the bank's representative signs on the dotted line, approving the sale.
The lender might also not be ready to take care of the buyer's closing costs as some buyers shall insist upon, and this could end up being the spoiler and kill the deal.
If you happen to be the buyer, the lender might be least concerned about the condition of the house or property, and it is left to you to make sure that you are buying the right kind of property, one which is worth the amount that you are paying for as well as one which has no litigation or any such issues connected to it.
Another important aspect of the business is that the lender might not be willing to divulge much of his profit margin or the market scenario, as far as prices are concerned.
He might always want to make you believe that due to a short sale he is incurring a loss, whereas he would already have made a profit from the loan that you have availed of and have been repaying for the past several years.
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