As the number of borrowers falling behind on their mortgage payments climbs to the highest level in five years, the number of "short sales" is increasing.
In a short sale of a home, a lender allows the property to be sold for less than the total amount due. In many cases, the lender forgives the remaining debt.
Short sales fell out of favor when mortgage delinquencies were low and rising home prices made it easy for borrowers who ran into trouble to sell their homes or refinance their mortgages. But as the housing market cools, interest in short sales is increasing.
Option one mortgage (h&Rblock) has the largest Portfolio of sub-prime mortgages PERIOD in the world!!!!!!!! they are talking such losses from short sales that they are willing to take 90% of the owed value to get it off their books!!!!!!
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