Posted by 15789465 on
I thought I'd blogged on this subject before, but it turns out I wrote a related article for Sterling Education. It was about lenders' Net Present Value analysis for approving or denying short sales. Here is the link. I think it will give you some real insights into the "negotiation" process. To summarize, when a lender is evaluating a short sale, it goes through a mathematical calculation regarding which scenario provides the larger amount of money: (1) the short sale or (2) a foreclosure. The foreclosure route is discounted to present value. In other words, if the lender thinks they...
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- Tags: assets, Banks and Other Lenders, deficiency, Foreclosures, income, short sale, Short Sales