Posted by Rich-CA on August 10, 2007 at 11:59:23:
Depends on the resale market. If the prices are rising, then the costs to get to the trustee sale might be recovered through a resale, so a bank would want the property. In cases when prices are stagnant or nearly so, then it might be useful to let the property go.
My sister in law works the data analysis section at Wells Fargo that handles foreclosures at HQ, they generally end up with the property unless the 2nd is foreclosing.
New CO Foreclosure LAW - Posted by Mary Co
Posted by Mary Co on August 09, 2007 at 18:47:37:
Question here - are banks still willing to do short sales now that CO foreclosure law changed?
The owner does not have any redemption time, only junior linholders have like 5 days to redeem.
They have longer time to cure and that is it.
Properties then sold on trustee sale.
So - is short sale still might be done under this circumstances?
Re: New CO Foreclosure LAW - Posted by David Alexander
Posted by David Alexander on August 10, 2007 at 12:07:57:
If that’s the case, now the banks would know the owner is done…
Makes more sense for them to shortsale… so, they know they aren’t going to get the property back after the trustees sale…
Banks aren’t in the REO business…
And in Co. I suspect they are in the Discounted note business…
Re: New CO Foreclosure LAW - Posted by Rich-CA
Posted by Rich-CA on August 09, 2007 at 22:09:34:
Why wouldn’t a short sale still be possible? Only the time frame changes based on your description. Trustee sales move faster than judicial foreclosure and effectively eliminate deficiency judgments.
Re: New CO Foreclosure LAW - Posted by Brenda
Posted by Brenda on August 10, 2007 at 13:47:12:
They are NOT getting properties back now that law changed. Now public fingts for properties at trustee sales. Why would they want to shortsale if they are NOT getting the house anyways???
We were going to spend significant funds for preforeclosure marketing and we are not sure now - should we do it or start looking for $$$ to by at sale.
Re: New CO Foreclosure LAW - Posted by Mary Co
Posted by Mary Co on August 10, 2007 at 07:43:35:
I meant why would banks go for a SHORT sale if property is SOLD at trustee auction and they don’t have to BUY IT BACK now, they DON’T have to hold it and sell thru an agent a year later.
They just sell it and at trustee sale.
Re: New CO Foreclosure LAW - Posted by David Alexander
Posted by David Alexander on August 10, 2007 at 14:18:10:
My guess is that although there are alot of people at the auction… very deals (real deals) are being done there…
In most cases the properties that make it to the sales from normal foreclosure(not tax)… have a significant amount owed and end up selling back to the lender…
Preforeclosures before someone is actually in preforeclosure is the bulk of my business…
Ie… They know after this month they will not be able to make another payment…
Re: New CO Foreclosure LAW - Posted by Rich-CA
Posted by Rich-CA on August 10, 2007 at 08:41:11:
Trustee sales is how foreclosures are done in CA. Normally the first bid is by the lender for the amount owed. They may not end up with the property if other, higher bids are received, but this is unusual. of course, once the bank “wins”, its all the same as before: they own the property and they hire an agent to get rid of it.
Re: New CO Foreclosure LAW - Posted by Brenda
Posted by Brenda on August 10, 2007 at 11:55:31:
Sorry but it is unusual in CA, it used to be in CO same way. NO REDEMPTION FOR OWNER now. Investors and general public are interested and Properties go fast now. And they go for 50-60 centes on the dollar sometimes.
Now - why would bank shortsale if property will be sold on trustee sale anyways???