Comments on: will lending institutions settle the loan for the estate of a deceased person for less than the payoff? http://lendingproguide.com/will-lending-institutions-settle-the-loan-for-the-estate-of-a-deceased-person-for-less-than-the-payoff/ Free Consumer Lending Resource Tue, 22 May 2012 03:33:26 +0000 http://wordpress.org/?v=2.7 hourly 1 By: JT http://lendingproguide.com/will-lending-institutions-settle-the-loan-for-the-estate-of-a-deceased-person-for-less-than-the-payoff/comment-page-1/#comment-269 JT Wed, 20 Aug 2008 05:37:51 +0000 http://lendingproguide.com/will-lending-institutions-settle-the-loan-for-the-estate-of-a-deceased-person-for-less-than-the-payoff/246/#comment-269 I don't see why this situation would be much different than any other short sale situation from the banks perspective. It will probably be a little more complicated than it otherwise would be but the estate should be able conduct a short sale. The lender doesn't really want to foreclose because of the time and effort involved. And, once they take the property back it will be marketed as a "bank owned" property which nearly always receives lower offers than a non-bank owned property because it is seen as a distress sale. So, it is in the best interest of the lender to allow a short sale. I would definitely contact the lender and ask them how to proceed. I don’t see why this situation would be much different than any other short sale situation from the banks perspective. It will probably be a little more complicated than it otherwise would be but the estate should be able conduct a short sale.

The lender doesn’t really want to foreclose because of the time and effort involved. And, once they take the property back it will be marketed as a “bank owned” property which nearly always receives lower offers than a non-bank owned property because it is seen as a distress sale. So, it is in the best interest of the lender to allow a short sale.

I would definitely contact the lender and ask them how to proceed.

]]> By: bdancer222 http://lendingproguide.com/will-lending-institutions-settle-the-loan-for-the-estate-of-a-deceased-person-for-less-than-the-payoff/comment-page-1/#comment-268 bdancer222 Sun, 17 Aug 2008 04:46:22 +0000 http://lendingproguide.com/will-lending-institutions-settle-the-loan-for-the-estate-of-a-deceased-person-for-less-than-the-payoff/246/#comment-268 It's worth a try. The mortgage company doesn't really want the property. They just want the money. It’s worth a try. The mortgage company doesn’t really want the property. They just want the money.

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