Forgive me if these are stupid questions but….. dont the majority of these short sales involve mortgages that had compulsory mortgage insurance? If so then isnt the bank going to foreclose and collect for $ mortage – sales price? from the insurance co? If that is so why would the bank ever accept a short sale. Is the bank just stringing the seller along to keep collecting payments? and is just going to foreclose eventually when the payments stop? or does mortgage insurance cover difference between short sale $ and full loan $ ? If the homeowner can beg-borrow-raise from family a few more payments is this just money in the bank ?
