Short Sale=no Equity?
Do banks only short sale properties with little or no equity? [ Edited by mush on Date 12/10/2003 ]
Do banks only short sale properties with little or no equity? [ Edited by mush on Date 12/10/2003 ]
No banks just don't shortsale properties with no/little equity. They will do a shortsale on any of their loans that become delinquent no matter how much equity is in the property. Whether or not they accept your (the investor) short sale offer is another story. Good Luck!
A foreclosing lienholder's job is to maximize their net recovery on a non performing asset. Their decision to accept or reject a short sale proposal will be based upon what is in their best, financial interest.
If there is plenty of equity, then there is little, if any, motivation or justification to accept less than they are due. If the equity is marginal, and the cost to foreclose, repossess, hold, and liquidate
may just barely, or may not be recovered... then a short sale may be in it's best financial interest.
I don't know of too many short sales on property with substantial equity.