If you’re curious why your short sale lender is asking you to pay them either by way of cash contribution or promissory note executed at closing of your short sale then the below information may be useful. Here is an excerpt from the article:
Is your mortgage current or delinquent? And if delinquent, how delinquent? Shorting lenders are going to look at your short sale through different glasses depending on whether your mortgage is up-to-date or past due at time of short sale request. When a mortgage is current and not past due, the short sale lender presumes there is no hardship. We’ll get into this in more detail in a future article but generally, a short sale lender will not even consider completing a short sale for a borrower who is current unless there has been a death, divorce, disability, or distant employment transfer. The ideal situation for completing a short sale with no contribution is when..