The short-sale wrinkle

Holders of secondary financing can derail process

Are you wondering why it takes so long to get short sales approved? The real reasons may be very different from what you might believe.

It would seem when prices are down and millions of homeowners owe more than their home is worth that it is in everyone’s best interest to approve a short sale. All the more so when Mortgage Bankers Association statistics show that a foreclosure costs the lender 30 percent more than a short sale.

As any agent or consumer who has tried to close a short sale offer will tell you, closing a short sale is usually a very long and complex process.