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SHORT SALE SCHOLARS

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Why Short Sales Work

Short Sales work for the most basic reason. They make fiscal sense.  For a lender to get their money, they must foreclose.  Assuming buyers bid the house up high at the foreclosure auction, the lender makes out okay but rarely do buyers bid the houses up too high.  This often means the lender will have to bid at their own auction and take the property back.  The lender must then carry the property, evaluation the condition, get it appraised and hire a Realtor to remarket it.  Short Sales eliminate all of that.  With a Short Sale lenders will typically cut their losses, get the property off their books and move on.  Lenders do this for accounting too.  If a lender has a large portfolio of under-performing loans, Short Sales also enable them to clean up their books.

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