Short Sale Myth #3 - Will The Lender Take Less?http://ocforeclosureoptions.com
Lenders will never accept $40,000 on a $100,000 loan?
Never say never! It all depends on the situation and even more importantly, how your agent frames the hardship and sets up the file.
Most agents think that the banks care about loss severity a lot more than they actually do. Now donât get us wrong, the banks do care about loss severity a lot. $40,000 recovery on a $100,000 loan is a loss severity of 60%, and that is taken very seriously.
The bank originally put up $100,000 for the mortgage and they arenât going to walk away with only 45% of it without doing their homework. The lower-level bank employees who set up your files and take your agents calls are not going to be able to approve a loss severity of that magnitude.
You are lucky that those lower level bank employees arenât the ones with the final say. Unfortunately, they are the roadblock that you have to get over or around in order to get to a senior loss mitigator or AVP who understands math and can ...
