Posted by zinzi on April 04, 2007 at 23:32:14:
If it is only 60% complete and almost being foreclosed on I think it would be a perfect one to do a shortsale on. The Lender that has the construction loan knows they would have to complete it before they can sell it and therefore hold non-performing paper for a minimum of 4 months plus the time it will take to actually go through the foreclosure process. My guess is the Lender does not want to hold that paper for the next 7-9 months.
You did not say what market you are in either, but if you pay $1m for an incomplete property that will be worth only $1.47m upon completion you don’t have a great spread there especially if you count the cost to complete it and the carrying cost before you sell it.
Just my 2 cents worth.