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Why Banks Approve a Short Sale

Charleston South Carolina: Foreclosure proceedings are very expensive for banks. It may be less expensive for them to accept a short sale if the homeowner is no longer able to afford their payments. In that case it is a prudent business decision. Banks don’t agree to short sales because they “feel sorry” for the owner or “understand” their circumstances. Short sales happen at all price points – from under $100,000 to homes in the millions.

Each short sale represents a family in financial distress for a variety of reasons such as divorce, job loss, health expenses, or poor financial decisions. It’s up to each bank to decide if they will accept less than the total due. Every bank handles short sales differently and each homeowner’s situation is unique. [..more..]