In such sales,
your lender absorbs the loss.
The risk of default is always the real driver of underwriting and, ultimately, lending approval decisions, and the likelihood of
a lender absorbing a loss increases as the amount of equity decreases.
Not exact matches
Bad
lenders would
absorb the
losses from their bad decisions.
Unfortunately for FHA, mortgage
lenders, and conventional mortgage insurance companies that
absorb losses on foreclosures, those who elect to walk away from their mortgages don't appear to care that their credit scores and ability to qualify for home loans can be seriously impacted.
The remaining $ 20,000 is
absorbed by the
lender s a
loss.
Lesser
lenders absorbed lesser
losses in exchange for the ability to get a much greater yield if there was no default.
A Florida short sale allows both you and the
lender to be ultimately in a better position because the
lender, too, will prefer to recoup only part of the mortgage amount than to
absorb a total
loss from a foreclosure.