As a result, the lending bank may agree to a sale of the property for less than is owed on it. In order for a bank to agree to take less than the homeowner owes on his mortgage, the seller must often show significant hardships that have led them to being unable to continue making payments on this property.
Due to this circumstance, the lending bank may agree to sell the property at a reduced price, lower than what is owed. For a bank to accept less than the homeowner owes on his mortgage, the seller usually needs to show significant challenges that have prevented them from continuing to make mortgage payments on this property.