Hey Gang,
I have an offer coming in on a BoA SS (holding both 1st and 2nd liens) where an investor is around 65% of original loan value AND asking 3% back at closing. Should I even entertain such an offer or am I just wasting my time?
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What are your comps?
The ratio that matters is the ratio of current offer to bank's opinion of value. Ratio to unpaid balance is not relevant.
Cool. It's 91% of FMV.
My experience is the loan value is completely irrelevant. What really matters is what percent of comps/current value. If 65% of loan value is 100% of present market value, then it is a good offer. I have a BofA coop short where BofA set the price at what is effectively 33% of loan value because that is market value. I doubt the bank will credit anything for an investor offer especially if it is cash.
Original LOan value really doesn't matter. What are the Comps and how close to the comps is the offer? For example, if the original loan was $500,000 but the comps indicate it's only worth $250,000 that's where you need to concentrate.
In my opinion it all comes down to 5 things:
1) Who is the investor (Fannie / Freddie / VA / FHA / other) Each are willing to accept a different percentage off FMV
2) Whats the value
3) Whats the offer
4) Whats the first get and
5) Whats the second get
Original loan value is seldom a factor - FMV and net foreclosure vs short sale is.
Thanks Gang! You guys Rock!
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