How Much Will The Bank Let Go In Short Sale

Comments(8)

• 
  TheShortSalePro12th February, 2004

  The outstanding loan amount is immaterial when negotiating shorts,
  except in the case of FHA insured loans, when there are ratios to consider.
  
  The benchmark for negotiation is the confirmed, as-is value of the subject property.
  
  Control the mortgagee's perception of value, and you'll control the negotiations.

• 
  tinman175512th February, 2004

  Each property is different. A know a property that was mortgaged for 240% of the value. (I'm not kidding) The appraisal said $125,000.00 The mortgage was $56,000.00 the house was worth $30,000.00 the bank let it go for $15,000.00 in a short sale. It was a 1st payment default, that was a scam to begin with. So offer what is a deal for you.
  People must not realize this but banks are not in the business to SELL houses they are in the business to LEND money
  Lori
  [addsig]

• 
  pejames12th February, 2004

  Lori,
  Have you seen that happen often? That is bizarre!!
  Patrick

• 
  tinman175512th February, 2004

  Yes,
  That is why the banking laws are so strict with investors. A few bad apples can change things. In Cleveland, Ohio, An investor had a 1st payment default on 57 loans. Several top banks pulled out of the market there, including Countrywide. It took more than one person to pull that off. Over a milion dollars was pulled out of those houses, some properties didn't even have houses on them.
  
  Lori
  [addsig]

• 
  Lufos12th February, 2004

  The Scam of double or triple sale to establish a value, then the John Doe buy with bank financing, is a classic and goes back so far that the original mortgages were written on tablets of clay.
  
  In modern times like during the last four years, I have watched many many such events.
  
  They are very simple. So simple in fact that some of our recent arrivals from the the Middle East are repeatitive as hell. All they do is buy the appraiser and for $5,000 or so they seem to divest themselves of their morality and deliver an appraisal (MAI) Member Appraisal Institute . aka "Made as Instructed" A very simple fraud and prevented by a very simple set of controls within the bank.
  
  At time of presentation of the loan, you include from the title company a report on the Title Chain. This is obtained from the Grantee Grantor Index at the Hall of Records. A five minute search and copy and the Scam is no more. You see a series of quick sales usualy in the same Ethnic Names and there it is. The Loan Committee then directs their Senior Appraiser to check it out.
  
  Thats the Scam and thats the cure. Now get the banks to do it. Thats another problem only fully understood by those who have served time in the military or worked for a really biggy corporation.
  
  Of course when you document all of this and attach thereto a true appraisal adjusted for repairs and marketing, you have a chance to get the Loss Mitigator, er Walter Mitty, to accept a lower offer. What is fun is to get the same bank to finance your purchase and give you the money to fix it up for marketing. Now that is A plus and entitles you to membership in that Most Exhalted Order of the WeDoneIt's of TCI.
  
  Cheers Lucius

• 
  omega113th February, 2004

  Lori,
  
  What do you use to make houses in PA. Playing cards? I never could believe that a house with the land can cost 30K, but anyhow, you been working hard on this one sentence posts technique. Just out of curiosity, is that strategy working for you beside you collecting posts next to your name? [ Edited by omega1 on Date 02/13/2004 ]

• 
  omega113th February, 2004

  TheShortSalePro, you've sad: "Control the mortgagee's perception of value, and you'll control the negotiations. "
  
  
  That's the biggest deterrent in one using the SS. I believe that there are parts of the country where the people are nice and you can just "control them" but in the big cities, competition among the "gladiators" is so fierce that controlling even yourself is not the easy task. Maybe we should al. move to suburbs of some mid west town?
  
  -----------------------------------------------------------------------------------------
  "Thats the Scam and thats the cure. Now get the banks to do it. Thats another problem only fully understood by those who have served time in the military or worked for a really biggy corporation."
  ----------------------------------------------------------------------------------------
  I would not generalize the name "bank". Who in the bank would be the right question because the CEO is never in his office, he plays golf for living, simultaneously arranging for the new 1 billion dollar loan to World com and his stck bocker purchase of the WC stock I his nephew's name. The last thing I accept to call bank is victim. Al this SS sales never hurt the bank. Remember PMI? Either they or the homeowners are the one that pays the price. Banks.... are you kidding me?
  
  
  Alex.

• 
  TheShortSalePro13th February, 2004

  Alex, information rules, and the transfer of information is the essence of negotiation. From big cities to the tiniest of hamlets...
  
  If your ss proposal is factual, and compelling, the mortgagee will defer to your information. And that puts you in the driver's seat.