Internal Bank Form Gives Insight Into Short Sale vs Foreclosure
July 22nd, 2010
Kevin is flying solo at the moment. He’d like to talk concerning a couple different things today. First of all, we would like to re-examine yesterday’s blog concerning HAFA. We talked concerning the lack of impact that HAFA, or anything with four letters, has on the short sale market. With concerning 15 different people responding yesterday, we found exactly zero completed HAFA short sales. So, as we confirmed yesterday, HAFA is basically 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 concerning is a little internal document that we were given from a representative of Bank of America. I do not believe that this is a Bank of America specific document. I believe it is an investor specific document. This document is an impact analysis. We wanted to communicate a few things with you from this impact analysis. It has the borrowers information, how much the loan total is, the origination amount, the home worth today, and the offer amount. This document also shows what they suppose the residence would sell for as an REO. Nonetheless, here is the shock. The anticipated marketing costs on this $271,000 home is roughly $34,000.
You need to keep this stuff in mind when you are told by your negotiators that they will take the residence to foreclosure. The lender will never get extra cash from an REO. It costs them too much money to take a residence to foreclosure sale.
One final reminder for our Crush It Short Sale Seminar. Friday, August 13th we are hosting our lecture. You absolutely 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 somebody who understands the importance of this lecture and is willing to jump on a plane to get some big education in the short sale business, you will not want to miss this lecture.
If you have questions, get your Short Sale questions answered by Short Sale Specialists.
Watch this and more short sale videos by Kevin and Fred at Short Sale Power Hour
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Fred Weaver is a founding co-owner of Group 46:10. He has been working in the financing/real estate business for over 7 years. Fred began his real estate career by working for a large wholesale bank as a processor and rate/lock specialist for home mortgages. After 2 years in the business, Fred transferred from the banking side of home loans to the mortgage side. While on the mortgage side of financing, Fred gained experience originating mortgages and processing files for Morgan Capital of Arizona, Inc.
Kevin is a founding co-owner of Group 46:10. He began working in the real estate business in 2007 after spending 8 years working in the finance industry for companies such as Bank One, Green Tree Financial, & GE Capital.