Re: SHORT SALE REALITY - Posted by Zach
Posted by Zach on September 23, 2004 at 22:50:25:
Short sale are a real tough breed. After trying twice I am discouraged, though I learned a lot.
My first try was with a house worth 187k, bank refused to accept a dime less than 170k for it. Considering the WORK that needed to be done on it yet, there was about three dollars in it for me. No go.
My second attempt was on a house i had appraised for 129k, and the bank was willing to accept 77k for it. Long story short, I wasnt able to convert on that one.
But it DOES prove that a bank is willing to deal way own on a house they don’t want to own.
Here is another reason why:
These people facing foreclosure had a principal balance of 85k. Through late charges and fees and everything EMC Mortgage tacked on, their pay off balance was 140k. True, they may have spent 5k on attorney’s and court fees, but they are still taking a 50k loss on PAPER. The bank was willing to accept 77k for it, a 63k paper loss.
Now even though the bank is taking a paper loss, their actual loss is limited to their attorney’s fees and costs. The bank gets a nice hefty 63k loss which offsets 63k in ACTUAL profits, and the bank comes out on top courtesy of Uncle Sam.
Neat how that works, eh?