Replies to This Discussion

Permalink Reply by Kevin - Greenville, SC on March 13, 2012 at 6:38am

What are your comps? 

Permalink Reply by Michael Hayley on March 13, 2012 at 6:41am

The ratio that matters is the ratio of current offer to bank's opinion of value. Ratio to unpaid balance is not relevant. 

Permalink Reply by Makoto Sato on March 14, 2012 at 6:42pm

Cool. It's 91% of FMV.

Permalink Reply by Christy Brock on March 13, 2012 at 6:42am

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.

Permalink Reply by Thom Colby CA Brkr 888-391-5245 on March 13, 2012 at 6:43am

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.

Permalink Reply by Michael Rigley on March 13, 2012 at 6:43am

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.

Permalink Reply by Makoto Sato on March 14, 2012 at 6:46pm

Thanks Gang! You guys Rock!