REALTOR® Magazine-Daily News-Lenders Chase Short Sale Sellers

REALTOR® Magazine Online: The real estate professional's business support tool.

OFFICIAL MAGAZINE OF THE NATIONAL ASSOCIATION OF REALTORS®

Search REALTORMag...

OR FOCUS YOUR SEARCH

NEWS & COMMENTARY

Inside For Brokers

Connect

Social Networking

Follow, fan, or friend us online.

Your Magazine

Magnifying your voice and celebrating your accomplishments

CURRENT ISSUE

PAST ISSUES

Daily Real Estate News | May 4, 2009 | Lenders Chase Short Sale Sellers
An increasing number of lenders are going after borrowers who sell their homes for less than they owe – known as a short sale – in order to recover more of the difference between the amount owed and the sale price.

Lenders say the factors that they consider when they decide to seek more money are:

How large was the unpaid debt?
Was the property an investment or a personal residence?
How much money does the borrower make and what other assets does he have?
What is the policy of the mortgage insurer or the holder of the second lien?

A PMI Group Inc. spokesman says the mortgage insurer "primarily target[s] borrowers who are not experiencing hardship – but those who simply elected to walk away from the property due to its decline in value."

Source: The Wall Street Journal, Ruth Simon (04/30/2009)