Why a short sale often takes so long

Nothing is more mercurial in today's Southwest Florida real estate scene than short sales. They raise the hackles of Realtors, the fighting spirit of all-cash buyers and the blood pressure of bankers.

No one can fully explain why it remains such a difficult task to complete one short sale -- the process by which a lender agrees to accept less than is owed on a home -- while another sails through. The only certainty as to why lenders do what they do: their bottom line.

Sometimes short sales bring more cash than foreclosures, and vice-versa. Which one it is depends on a host of factors, not the least of which is whether a lender has an agreement with the Federal Deposit Insurance Corp. for reimbursement of most losses on a bad loan like those sold short.

Click here to read the entire article: Why a Short Sale Takes So Long

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