Why would a bank accept a Utah Short Sale?
There are many variables that a lender will consider when presented a short sale. The creditor will carefully examine the pros and cons of each of their options, however it all boils down to the potential financial loss or gain of the transaction. A lenders job is to turn a profit and if there are options that will better suite the lender they will reject your attempts to short sell your home. Don’t fret because there are many cases when a short sale will be a win-win for both the borrower and the lender.
Short Sale VS Forclosure?
We know which one is better for the borrower, but the mortgage company needs to be convinced which is better for them. The bank is going to want to take a look at the borrowers financial situation to determine if they really are in need of a short sale. They are also going to ask the borrower to write a statement or letter explaining why the borrower is in need of a short sale. The letter is often referred to as a hardship letter. Each lender will have slightly different requirements, however you can find the most common here how to prepare a Utah short sale package.
The lender will also review the cost of just foreclosing on the property. There are a number of legal costs involved with a taking a property back with foreclosure. Some of the most common legal costs are attorneys fees, title fees, and the cost to auction the property. If the bank can not get a high enough offer at the auction they may purchase the property back themselves and prepare for the future sale of the home. They will also weigh the cost of being forced to resell the property themselves.