Typically, the bank in second position tells the first bank they want some compensation in order to approve the short sale. Sometimes the first bank agrees, sometimes they do not, other times they try and squeeze either the buyer or the seller for what ever they can in an attempt to mitigate their circumstance (the second bank)...
Part 1 – Short Sales Don't Necessarily Represent The Best Value To Sunriver Home Buyers…
The connotation that has developed with prospective buyers of short sales, is that they represent a smoking deal. That type of thinking is typically incorrect in most instances. Here is why... By basic definition, a short sale is A.) Property that is being sold at a price lower than what is still currently owed on the home loan. B.) The seller will not be making up the complete deficiency at time of closing to their lender. Nothing in the definition regards value...