Can the lender reject a short sale offer?

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Can the lender reject a short sale offer even though it would be HUDs net requirement? or do they have to accept the HUD net requirement?

Samantha · Posted: Sat Oct 01, 2005 3:11 am Post subject: RE:

Hi Jim
Welcome to the forums.

HUD allows a lender to reject a short sale or a pre-foreclosure sale offer under certain conditions. If the property is not owner-occupied and if there is a second mortgage loan taken against it, then HUD does not allow a lender to conduct a short sale.

Generally, lenders agree to a short sale when they find out that the borrower is unable to make the entire mortgage payment. The short sale will allow him to receive at least a portion of the unpaid loan balance, if not the total outstanding payment.

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Regards,
Samantha.

Guest 0.10 Dollars($)

Hi

Can i have more details on it

Thanks in advance

Nics

Caron · Posted: Mon Oct 03, 2005 1:26 am Post subject: short sale

Hi Nics

At times lenders are willing to accept a lesser amount than what they should receive from borrowers. This is mainly done to avoid the costs of conducting a foreclosure. This is where a short sale comes in. It helps the lenders get back a larger portion of what they had offered as loan, at least an amount equal to the value of the home. At the same time, it gives the borrowers the opportunity to get rid off the amount of unpaid balance which is greater than the property value.

A short sale saves costs like the attorney fee and those associated with the eviction process, damage to the property and costs related to the resale of the property. A short sale is a better option compared to a foreclosure or a bankruptcy. These will affect your credit score more than a short sale.

But in case of second mortgage on the property it becomes difficult to conduct a short sale. This is because the second lender does not wish to lose his interest in the property and therefore he would not remove the lien from the property.

Regards,
Caron.

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