Posted by E.Eka on August 19, 2004 at 12:02:19:
The BPO is the key. What you can do to contest their judgement is to tag along with them. Have pictures of the horrific parts of the house. YOu want it to look as crappy as possible.
Short sale at 50% of mkt value–go fly a kite? - Posted by Able Learner
Posted by Able Learner on August 19, 2004 at 11:09:45:
Is a short sale purchase at 50% of market value ever realistic? I would like to use a hard money lender for one of these.
Are high equity short sales few and far between? A 50/50 chance? 60/40?
Iv’e got a house that is in good shape. No baddies.
Most of the bank’s objectives are to sell for as high a price as possible . . . and the BPO–the broker’s inspection–is key, right?
Able
Re: Short sale at 50% of mkt value–go fly a kite? - Posted by NJDave
Posted by NJDave on August 19, 2004 at 15:31:07:
Yes, it can happen (I’ve been doing them since 1979 or 1980)… but huge discounts to market value are more the exception than the rule. Your Proposal (factual and compelling) to the mortgagee must convince them that accepting your Offer is in their best, financial interest.
Big discounts touted by Seminarians are usually discounts to the mortgage balance, not the as-is, FMV.
Lenders are increasingly business oriented and don’t easily concede dollars… since it is their job to maximize their net recovery…
But, sometimes you can get lucky… your offer is considered on the right day and the right time… and it blends in with a larger, organizational edict of the day.