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  • Profile photo of RedgumsRedgums
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    @redgums
    Join Date: 2002
    Post Count: 3
    August 30, 2006 - 11:49 am

    My understanding is that the process is started BEFORE the lender takes possession of the property. This is not a mortgagee sale. i am aware that the lenders here have a statutory obligation to get the best price they can when they take possession, but are they not free to forgive a debt, or discount it, if doing that solves the problem and expense of foreclosing?

    Profile photo of RedgumsRedgums
    Member
    @redgums
    Join Date: 2002
    Post Count: 3
    August 30, 2006 - 10:39 am

    A pre-forclosure sale at under market price where a deal is made with the lender to accept less than what the distressed vendor owes on the property. Common in USA apparently. where lenders may accept anywhere from 50 – 80% of what they are owed simply to get the problem off their desk.

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