Jul 27 2010
Inside Lender Form Gives Insight Into Short Sale Vs Foreclosure
Kevin is flying alone today. He’d like to talk concerning a couple different things today. To start with, we would like to re-examine yesterday’s blog about HAFA. We talked about the lack of influence that HAFA, or anything with four letters, has on the short sale market. With about 15 different people responding yesterday, we found precisely zero completed HAFA short sales. So, as we stated yesterday, HAFA is simply not a game changer. We even got a note that stated that a realtor was on day 67 of their 15 day HAFA route. That was humorous. It has not been impactful to the short sale market in spite of what others may have claimed.
The second thing that we would like to talk regarding is a little internal document that we were given from a representative of Bank of America. I do not think that this is a Bank of America specific document. I believe it is an investor specific form. This form is an impact analysis. We wanted to share a few things with you from this impact analysis. It has the borrowers details, how much the loan total is, the origination amount, the home worth today, and the bid amount. This form also shows what they believe the home would sell for as an REO. Nonetheless, here is the bombshell. The projected marketing costs on this $271,000 home is about $34,000.
You want to keep this stuff in mind when you are told by your negotiators that they will take the house to foreclosure. The bank will never get extra cash from an REO. It costs them too much cash to take a home to foreclosure sale.
One last reminder for our Crush It Short Sale Lecture. Friday, August 13th we are hosting our lecture. You definitely do not want to miss this lecture. It is being taught by guys that are in the trenches completing short sales. So, if you are a Phoenix area realtor or even someone who understands the value of this lecture and is willing to jump on a plane to get some great education in the short sale industry, you will not want to miss this class.
Get powered up by Kevin and Fred at Short Sale Power Hour by the Short Sale Specialists of Arizona
