Why Banks Prefer Short Sales
- 58 minutes ago
- 1 min read
Special Episode 4, Short 2
Banks often choose short sales because they allow the loan to be reset with a new borrower who qualifies for the reduced value of the property.
Instead of continuing with an existing borrower who has already struggled to make payments, the lender can move forward with someone who has a stronger financial profile for the lower loan amount. This approach reduces ongoing risk and creates a cleaner lending arrangement tied to the current market value of the home.
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