Will bank let me do a short sale?

Believe it or not, we are often asked 'will bank let me do a short sale?' The point, though, is not whether banks will let you do a short sale on their mortgages. The real question is are you good enough to convince the bank that it is in their best interest to let you do a short sale?

Will bank let me do a short sale?

The answer to this question is yes. You can try doing a short sale with any banks. Keep in mind, though, that sometimes your real estate short sale will not be accepted. Hence, some people say 'the bank does not do short sale'. But, the same bank will turn around and do a short sale on another mortgage that the buyer or investor has put forward a convincing argument that if they did not do the short sale, they will end up losing more money should the situation worsen and the house goes into foreclosure.

All banks do short sales

Banks are not in business to make money off of real estate. Banks are in the lending business. When a homeowner cannot pay for the mortgage, even if he or she is willing to sell the home, the lending process has gone wrong. The mortgage company does not like it when the mortgagee cannot afford the mortgage any longer. It reflects badly upon their lending process and they would love to remedy the situation.

First, the mortgage company will try to work something out with the homeowner. Failing that, they will have no choice but to foreclose on the homeowner. But banks don't want to own the home, so they will need to find a way to get the house off their books as quickly as possible. And, banks know that once the house goes into foreclosure, their money will sink for a long period of time. And, for banks, that is not a good thing.

Since situations like the one mentioned above are not rare to the banks, they would much prefer to do a short sale if the numbers make sense. This will save them the cost of foreclosure, the money they have to put into the house to sell it on the market.

Of course, if your short sale package offers the bank a ridiculously low value, the bank may want to take their chances through the foreclosure process.

So, to answer the question 'will bank let me do a short sale?'; the answer is it is up to you to prove to the bank that they should let you do a short sale. If the number makes sense to the bank, they will let you do a short sale. No banks want to lose money so if you can show them that it's more economical doing a short sale, then they will let you do a short sale.