That was a big catalyst after the 2008 mess. I bought my first house in 2010 and there were loads of short sale houses where the mortgage was quite underwater so they'd negotiate to essentially let the bank do the deal and walk away without foreclosure.
A negative to this is as someone who had already had my mortgage even halfway through underwriting to essentially be as much approved as possible without having chosen a house, the banks would still take quick close lowball cash offers. Which of course drove homes away from a first time buyer like myself to investors and speculators. I lost two that I put offers on both of which to smaller cash offers. I gave up on short sales after that and just bought from a seller.
If you can't tell from my tone of this or my other long rant, I fucking hate banks/lenders and it's my mission to make sure they get as little as possible from me.
That was a big catalyst after the 2008 mess. I bought my first house in 2010 and there were loads of short sale houses where the mortgage was quite underwater so they'd negotiate to essentially let the bank do the deal and walk away without foreclosure.
A negative to this is as someone who had already had my mortgage even halfway through underwriting to essentially be as much approved as possible without having chosen a house, the banks would still take quick close lowball cash offers. Which of course drove homes away from a first time buyer like myself to investors and speculators. I lost two that I put offers on both of which to smaller cash offers. I gave up on short sales after that and just bought from a seller.
If you can't tell from my tone of this or my other long rant, I fucking hate banks/lenders and it's my mission to make sure they get as little as possible from me.