Short sale Feel through
I've been trying to short sale my property in AZ for 6 months now. The bank wants $85,000 for an area that's selling for $55,000. I had 2 bids for $70,000 which the bank turned down. My realtor just told me that the govt is offering the bank money for short sales on top of the money they make from an auction. So in essence, foreclosure is now a government/bank partnership. I couldn't believe this. What is going on out there?
Replies to This Discussion
-
Permalink Reply by JL Wdng on
-
Evidently it's worse than most of us thought as evidenced in this clip.....
http://www.youtube.com/watch?v=ssl5yb7FewA
-
-
This is just too crazy. I feel that this total foreclosure investigation is a joke to make it seem as though they're doing something just before elections. These politicians will do anything for a VOTE. Thanks for this info.
-
Permalink Reply by Jeff Payne on
-
Govt is offering the bank money for short sales? That is a new one on me. Who is your lender? Who is the investor on the loan? How much do you owe on the property?
-
-
That video, as much as I hate to defend any bank, is full of misinformation and 1/2 truths. Do some more research and you will see that it is not like the way it is portrayed.
JL Wdng said:Evidently it's worse than most of us thought as evidenced in this clip.....
http://www.youtube.com/watch?v=ssl5yb7FewA
-
-
Hence, he said, they said, who did? it's all a mess and what drove it there? One guess.
-
-
What? I can not follow your train of thought. The video was BS... Did you see the response from the FDIC?
JL Wdng said:Hence, he said, they said, who did? it's all a mess and what drove it there? One guess.
-
Permalink Reply by Steve Early on
-
Hi Virginia:
I think what your Realtor might be referring to is:
If a short sale is done through the HAFA program, the servicer of the loan is eligible for a $1,500 payment from the government as an inducement to do the short sale. I'm not aware of any government program that rewards the lender or investor for auctioning your property off.
The question of value is something we run into all the time. It appears that whoever did the BPO (valuation assessment) on your property may have pegged it higher than what perceived market value is. In addition to the BPO each investor typically has some internal model that they also run to come up with a dollar figure they should net. After they analyze this, they give that net figure to the lender who then looks at Realtor commissions and other expenses they would have to pay out, adds those expenses to the investor's net figure and comes up with a price.
Unless you have a lot of back real estate taxes or HOA fees that have accumulated, based on the price that they gave you, I would guess that they are looking to net something in the $76-79,000 range. If they can't get what they want to net, they'll go to foreclosure.
The best way I have found to have them reconsider is to get an appraisal done that shows how much a lender would loan a buyer for your property. We once embarrassed Wells Fargo into accepting an offer that they were not going to accept because the buyer went to Wells Fargo for a loan. The appraisal came back and the appraised loan value was far lower than what they demanded to do the short sale. We were able to go to them and say - "Your own company won't loan the buyer what you are demanding for it. Please tell us how you expect anyone to understand that logic."
It doesn't always work, and an appraisal does cost money, but it is typically more effective than trying to use comparable sales to get them to move their price point down (which they do not like to do at all since they rely quite heavily on the BPO and their model for valuations).
© 2024 Created by Short Sale Superstars LLC.
Powered by
**********************************
like buttons