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Article: 'Cross-Qualifyinga[euro][TM] Helps Banks Poach REO.(News)
- Article from:
- Mortgage Servicing News
- Article date:
- October 1, 2009
CopyrightCOPYRIGHT 2009 SourceMedia, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Byline: Kate Berry
Washington-As the largest banking companies try to unload thousands of distressed properties, they are using a controversial practice that can win them new loans and has competitors crying foul.
It is called "cross-qualifying," and it works like this: Say that Lender A is selling a repossessed property, or has a troubled borrower who wants to sell the home through a short sale.
Someone makes an offer to buy the house and has been prequalified for financing from Lender B. But Lender A will not consider the bid unless the prospective buyer qualifies for one of its mortgages.
Acceptance of the purchase offer is not ...