SSP: Need Help W/ Short Sale Proposal
SSP:
I am preparing my first two short sale proposals utilizing the outline in your primer. I am stuck trying to figure out how to create the Cost Benefit Analysis which would include a "time value of money" scenario. Do you have any examples of such an analysis or any other specific information on how to prepare that part of the proposal?
Thank you!!
Create a simple chart that compares the costs a mortgagee would incur if it continued with a protracted foreclosure process... taking back the property as an REO, holding, and liquidating VS taking cash within 30 days.
As far a time value of money... we all know that a dollar today is worth more than a dollor tomorrow... or 6 months from today.
If the mortgagee had the dollar today, how much could that dollar yield if it were reinvested (new loan)?
If the mortgagee had $100,000 today, instead of $100,000 or less in 6 months, what could that $100,000 earn during that 6 month period.
That is a lost opportunity and can factor into your argument to compel the mortgagee to accept a settlement today.
If you are uncomfortable with charts or numbers, you can simply paraphrase your conclusion.
[addsig]