In Arizona I have come across lenders who talk homeowners into short selling their home vs. signing a deed in lieu.
February 15th, 2009 by Jarad S.
Question: In Arizona I have come across lenders who talk homeowners into short selling their home vs. signing a deed in lieu. Why wouldn’t they want the deed in lieu? What’s in it for them if the homeowner does a short sale?
Answer: – With a short sale, the home gets sold even though they may take a larger loss upfront. With a deed in lieu, they take back the property, which looks bad on the books and now they have to find a buyer. In a market like this, they would much rather take a for sure sale and not have to worry about selling it some time in the future.
