Lenders have been hit with non-repayment of the mortgage loans they made. Their money is out there and they need to get it back, a short is often the answer.
Companies that Buy Houses – Goose Creek SC: So many people were able to buy houses in the last decade that can no longer keep up that there had to be solution for the lenders. Job losses, the economic climate, illness, divorce, reset interest rates that raise the mortgage payment, and more have created an atmosphere of home loss. It is an epidemic if you were to compare it to public illness.
Lenders have been hit with non-repayment of the mortgage loans they made. Their money is out there and they need to get it back. They must replace the money they initially gave the borrower to buy a home. A short is often the answer. Since the lender can’t get the loan repaid as specified in the original loan agreement, they will often accept an amount from a buyer that will pay them, but the amount paid might be short of what the borrower was loaned.
For example, where a borrower bought a house with a $250k loan, the house may have been worth $230k. Since the market prices have dropped dramatically over the last several years, the house may only be worth $200k at this time. If the borrower still owes more than $200k on the loan, that puts them upside down on the loan.
“Real estate investors deal with lenders on short sale procedures regularly these days and may be able to help you pay off your mortgage.”
A buyer can offer the lender the $200k the house is worth at this time, even though it may be short of what is still owed. If the borrower still owes $220k, for example, the bank would take a $20k hit on their loan, but it may still be acceptable to them. This is due to the large numbers of bad loans out there today. Foreclosures are repossessions and the lender can only get what the house will bring at auction in that case.
They often discover that they are better off taking the ‘short sale’ amount than waiting to go through the entire foreclosure procedure. Foreclosure is very expensive for them, and getting an amount that may end up less than what the short sale would net them at auction has resulted in many short sale acceptances by lenders. Real estate investors deal with lenders on short sale procedures regularly these days and may be able to help you pay off your mortgage. They will buy your house at a discount and offer the bank a short sale amount to get them paid off and the loan forgiven for the borrowers.
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