Why Do Mortgage Lenders Accept Short Sales

  • The mortgage is in arrears
  • Property condition is poor
  • To help a homeowner with hardships defaulting on a mortgage
  • The area or neighborhood has depreciated
  • The mortgage lender’s shareholders are concerned with excessive defaulting mortgages; By accepting the mortgage short sale process, the mortgage lender can help themselves by avoiding a lengthy, costly foreclosure process. A foreclosure results in the mortgage lender owning the property (known as real estate owned or REO). REO’s are a liability, not an asset; too many liabilities will cause any business problems
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