Re: get this - Posted by Steve-WA
Posted by Steve-WA on October 08, 2003 at 11:39:31:
“Who pays the difference” was to get you to come to the conclusion of:
If the seller is motivated enough, and if the situation is such that it makes more sense to him to pay the 5550 to stop his responsibility for lot rent / insurance / utilities / etc. (like cauterizing a homemade amputation with a blowtorch - hurts like he//, but consider the alternative - bleeding to death).
Only other possibility that I see would be to put together a short sale package and submit to the bank - this would be done only after the seller was behind three payments or so, and the bank can see that they, too, should cut their losses and take what they can get when they can get it. And the likelihood of that happening is a crapshoot - different banks, different bankers, phases of the moon - often a bank, while it makes sense to get rid of non-performing assets, will not do that for whatever reason. AND it can take months for the package to go through and be reviewed - sometimes right up to foreclosure/repo auction time.
This is VERY basic, and applies to standard REI short sales as well. In fact, Conseco in my area kind of runs its repo liquidation like an ongoing short sale process - they wait for a bid (package), evaluate and decide if they will accept even before they will start the repo process at all. AND holding costs are mounting, which they will not acknowledge nor pay for. Really tough to deal with them, especially when most of their repos are trashed - need walls, roofs, floors, carpet, windows - etc - major rehab, on a MH scale.
I did not mean to put you off, but I thought it was obvious regarding who would have to make up the difference of 5550.
Good luck with that.