Quote:
Originally Posted by NinaN
The banks are selling foreclosures for higher prices because there is little supply and lots of demand. Kickbacks might increase profit (or really just decrease loss) but it won't change what the market is willing to pay for a house.
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I understand. But these days, (at least in Central Florida/Orlando). Many short sells are "selling" for 10-15% less than foreclosures. But this affects the market. Cause the appraisal comes in and counts the short sells and does not re-add back the kick backs the banks got from the government.
So this becomes an appraisal problem. I think the government/banks etc need to clearly disclose how much money banks completing short sales get back in the MLS system so appraisals can re-add the true value.
Say one foreclosure sold for $400K recently. But same/similar short sell completed at 360K. But in reality, the 3 lien holders got back close to the 40K spread difference. But on MLS, all it shows is foreclosure netting $400K and short netting $360K even both really netted the banks the same exact price.
I know in regular sells when seller rebates/credits closing assistance to buyer, it clearly shows in the MLS this transaction. But in shorts sells with kickbacks nothing is disclosed in the MLS system. Gotta be fairer way to analyze "market" price for a home when these government programs/credits are involved especially for appraisals.