Why Banks Do Short Sales

by Vena Jones-Cox

Q: What makes a bank decide whether to take a discount on a defaulted mortgage or not? And what formula do they use to decide how much to take? Some banks I’ve talked to have just said no to a discount right away, and others seem perfectly happy to negotiate any offer, even if it’s a fraction of the loan amount. What gives?—D.D., Houston

Original post blogged on b2evolution.