Canadian Mortgage Firm Explains Why Local Banks Balk at Short Sales

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Canadian short sales open a whole new can of worms for lenders - Marcus Arkan, CTO of Syndicate Mortgages

According to a recent post by Marcus Arkan, CTO of Syndicate Mortgages and mortgage expert, banks are hesitant about entertaining people who want to get their mortgage off their hands on a lower price tag. A short sale designates an accepted amount of a home that a bank agrees on. However, as the name implies, the agreed upon amount in a short sale is less than the actual value that is owned to a lender.

According to Mr. Arkan, “Lenders are looking to make a profit from mortgages and a mortgage that someone is trying to sell with a small offer is not as tantalizing to them. Homes that are about to face foreclosures can be a reason.”

The CTO adds that the infamy of short sales isn’t the only reasons why banks might want to give them a wide berth. For example, as Mr. Arkan points out, a lender might decide to forgo a short sale if its offer price is lower than its BPO (Broker Price Agreement). A bank might need to weigh the costs to hold and sell as well as foreclosure costs before deciding whether to accept a short sale.

A bank might also not accept a short sale if the seller in question does not qualify as Mr. Arkan points out. A mortgage that faces foreclosure is not a very good investable option. Mr. Arkan advises such sellers to keep all lines of communication open with the lenders that they are trying to sell their mortgage to through such means. The CTO also emphasizes how important it is for such a mortgage owner to keep himself updated on pending offers lest a bank goes through with a foreclosure.

The CTO concludes his analysis by stating that both buyers and sellers need to qualify for a bank to accept a short sale. This also includes having the proper documentation at hand like credit reports and proof that an owner has sufficient assets. Mr. Arkan states it would serve such mortgage holders well if they researched their options before approaching buyers and banks for deals such as these.

To read more about Canada mortgage and mortgage credit scores, visit the website http://www.syndicatemortgages.com.

About Syndicate Mortgages
Syndicate Mortgages is a real estate firm that is based in Canada. The firm offers local and foreign investors the chance to avail the most suitable mortgage rates in the country. Syndicate Mortgages has access to a large number of lending institutions across Canada like major banks, private funds, credit unions, trust companies and over 70 Canada mortgage lenders. The firm is composed of industry specialist who leverage years of experience to provide customers with solid financial advice and locate mortgage rates that will suit their individual needs the best. For more information about the company please refer to the following –

Contact Details
Syndicate Mortgages Inc.
http://www.syndicatemortgages.com
Toll Free: (888) 646-1062
Email: info(at)smibroker(dot)com

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