Posted by roger on September 11, 2003 at 24:05:25:
i agree with JCR plus if they repo it ,it will cut into thier ability to borrow money from the fed, so if it looks good to you go for it.
Yet another short sale question - Posted by JCR
Posted by JCR on September 10, 2003 at 17:09:08:
A seller contacted me about his property - he bought it for $430k exactly 1 year ago. The property has a first for $408k and the owner tells me he is in default for the last 8 or 9 months.
My attorney tells me not to waste my time - the bank will not give the note holder a short sale for an amount I would be willing to purchase the property for - especially when the property could appraise at close to or at the financed price.
Comments please…
Re: Yet another short sale question - Posted by Russ Sims
Posted by Russ Sims on September 10, 2003 at 18:22:22:
Your attorney may not have a full grasp of how much the bank stands to lose on this…the bank will be foolish not to consider short sale options. They are already out nearly $30,000 in back payments. If they get the home back after foreclosure they have to pay a commission to the listing agent…this commission will probably amount to around $25K…plus they’ll be losing money on the home for every month it doesn’t sell.So, just to break even on this the bank would have to sell the home for $460 to$470k…not realistic.
Since the bank already knows they’re going to take a substantial loss on this, why wouldn’t they consider selling the home at a discounted price? This would save them time, money, and hassle of foreclosure.