The lender will only accept a short sale if they dont believe they can do better based upon the comps. The decisions made by the lenders are often convaluted ones made by young MBA’s with no idea as to what is happening on the streets. When they turn one down, sometimes they win and sometimes they lose.
The price the property is offered while attempting a short sale is often arbitrarily low in a desparate attempt to get a quick offer acceptable to the lender through a bidding war. The seller doesnt have the luxury of time while the lender does. The lendeers dont want to dump properties for a couple reasons. First and foremost they are looking to mitigate their losses. Second, if they sell cheap they create a lower market level that they could easily be selling a couple more into.
