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Short Sale FAQ #2: Why Would The Bank Agree To A Short Sale?

by Charlie Allred

This Arizona short sale question comes up a great deal… “Why Would The Bank Agree To A Short Sale?”

The simple answer is this: The bank or lender REALLY does not want your home and a short sale gives the bank (and you) an out.

You may be in a position as you read this of thinking the lender is this nameless, faceless, and evil corporation whose sole existence is to take your home. This could not be further from the truth.

The lender in most cases is nameless and faceless, but rarely if ever do they want your home… What they want is what your home represents to them. And that, my friend is an income stream.

The loan on your home generates income in the form of interest for your lender. If any lender went out and just took back homes through the foreclosure process with no regard to their income, they wouldn’t be in business very long because a home does not generate revenue by itself.

So you have vehicles like Arizona short sales which allow the lender to recoup as much cash as possible as quickly as possible. The short sale in most cases will also allow you to get out of a burdensome debt obligation. So you both win.

The bank likes short sales because they are often cheaper than foreclosures, the properties are much better maintained, and they get cash from a buyer that they can then turn around and re-lend to a solvent home buyer with interest attached.

Of course, the lender does not really care about your circumstances, but a short sale allows the lender to look out for his best interest and you get to look out for yours. An Arizona short sale is the closest thing to a win-win scenario to be salvaged from a bad debt.

Learn more about the Arizona short sale process.

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