Many lenders are beginning to realize that it makes far more sense to allow a Shortsale and even to pay for one.

One case of such a payment occurred to an Illinois homeowner who fell on hard times.

Chase gave him a $20K for his troubles.

This makes sense as a straight foreclosure will generally sell for far less than a Shortsale.

What is little known is that the fate of a shortsale is not held up by the trustee, particularly if it is a Fannie / Freddie mortgage.

You see, the subcontractors who service loans for Fannie / Freddie are incented to get the most money they can out of a mortgage.

They are contacted to use any means necessary to capture as much value as possible for the investor and they often times are looking for a way to say no to shortsales.

Why?  Because the longer they wait, the more revenue they collect from their service contracts.

Don’t believe me?  It’s all public knowledge and available (although it does take some time to find it) at Fannie / Freddie.

I recently read the guidelines because…well, I can’t remember the exact reason I read them.  I believe it had something to do with QE2 research and how many MBS from Fannie / Freddie were purchased.

In any case, shortsales can pay.  You just have to be a little lucky and definitely must have a real economic hardship.

But hey, who doesn’t have a little bit of that these days?

Appraisal Source is a New York based residential real estate appraisal firm. Their highly-qualified appraisal staff of New York City and Long Island real estate appraisers provide independent residential real estate appraisals for a variety of purposes.

Here’s the original article…Why it can pay to try a short sale of your home