blurbosphere.net

This is one of the most common questions asked right now in the Cedar City Real Estate market, which is a little unexpected because our foreclosures are far below the national average. Prior to a sale the home owner/borrower and the mortgage company negotiate the terms. In most cases the lender agrees that if the sale of the house falls short of what the owner still owes on the mortgage the remaining balance maybe forgiven (Written off by lender). The reasons why so many lenders will agree to accept the proceeds of a short sale and forgive the rest of what is owed on the mortgage when the owner cannot make the mortgage payments is simple. By accepting a short sale, the lender can avoid a lengthy and costly foreclosure, and the owner is able to pay off the loan for less than what he owes. It is common to hire a Real Estate agent to aid in the negotiations.