FHA Short Sale
Can someone explain why a mortgagor would accept a short sale on a FHA loan when the FHA guarantees to pay the mortgage off if the mortgagee defaults?
Can someone explain why a mortgagor would accept a short sale on a FHA loan when the FHA guarantees to pay the mortgage off if the mortgagee defaults?
mortgagee=lender
mortgagor=borrower
Short sales are predicated on a property's as-is, fair market value.
If it's in the lender interest to participate in a short sale, and it satisfies FHA criteria, the exposure to loss is reduced... and that's the servicer's duty.