I have a short sale listed in Apple Valley, Ca. Which is depreciating rapidly. It comps at $200k, and I have an offer at $190k. CW wants $225k. Today the the loss mit told me that if they do a short it will cost them $86,510.30 and $65,145.95 if they forclose not including the difference between the original loan amount. Maybe someone can explain this! Do Loss Mit's smoke their breakfasts?
Annoyed
Apparently this one does! If a foreclosure cost that much the lenders would just give most of the foreclosures in Michigan to the owners to save money. Very few go for over $65k! But no- they will foreclose and list properties for $25k and less, netting under $20k- so you can be sure that they are paying far less than that for the foreclosure!
The only thing I can think of is that whoever purchased the note must have recourse that is different depending on how the issue is settled.
Anyway, what difference does it make how much it costs them? The house is worth what the house is worth, no matter what they have in it. Anyone unwilling to accept $190k for a house that honestly comps at $200k in this market is unwise- just the commission will ensure that they net less than that if they go to REO, without mentioning holding costs and etc. It might be worth that $21k difference to get rid of it now- after all owning the REO restricts their lending ability and looks bad on the books...
Chris
Some one doesn't know about carrying costs and disposition costs after the foreclosure sale.
Tell'm hes reading his chart upside down. lol