Banks are not in the business of owning real estate in Atlanta. They want to make loans and shift the risk over to the consumer. They then want to sell these “safe” loans and to investors and retain the rights to service it. It’s like an investor buying a property, getting a tenant in it and then selling it to another investor while maintaining the property management side of that.
In addition, banks are run by boards and owned by shareholders. Shareholders care about profits. A delinquent loan is not profitable. However, they don’t want to foreclose because of the extra expense and frankly it’s the lowest offer they will receive. In a short sale, you are getting a higher offer than what a foreclosure auction will bring.
So, why would a bank want to do a short sale? To avoid foreclosure, the same as most consumers. The challenge and difficulty you hear about in the media is relate to all the moving parts associated with a short sale.Read More