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Old 12-14-2007, 09:30 AM
 
Location: Florida
26 posts, read 19,672 times
Reputation: 13

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For the experts here...Any ballpark idea as to what % of List Price these homes usually close at?

I'm looking at one where the Original LP was $500k and now, 60 days later is $420k....At what point will the lender just decide to Foreclose the property if all offers currently received are substantially lower than $420...
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Old 12-14-2007, 09:54 AM
 
Location: Dallas/Fort Worth, Texas
4,170 posts, read 13,935,507 times
Reputation: 2607
Hi crg28,

There is no formula for when they decide to foreclose or how much of a loss they will take. I work a lot of short sales and usually when they put it on the market, they list it at what they owe plus the fees associated with the closing, after a month, most of them will drop it a certain percentage that varies from 1% to 10% and on the price range.

Your realtor(the one representing you) should be able to find out how much of a note is owed...
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Old 12-14-2007, 11:01 AM
 
Location: Florida
26 posts, read 19,672 times
Reputation: 13
This one dropped from $500k to $420 in 60 days.

Lets say the original list price of $500 was listed as you said (at what they owe + fees ,etc). If that is the case and the home now is at $420, why would they accept an offer in the $350's..? (They've had 4 offers between $330 and $350 according to seller agent) Wouldn't it be better to just foreclose?

Quote:
Originally Posted by nsumner View Post
Hi crg28,

There is no formula for when they decide to foreclose or how much of a loss they will take. I work a lot of short sales and usually when they put it on the market, they list it at what they owe plus the fees associated with the closing, after a month, most of them will drop it a certain percentage that varies from 1% to 10% and on the price range.

Your realtor(the one representing you) should be able to find out how much of a note is owed...
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Old 12-14-2007, 01:23 PM
 
Location: Las Vegas, NV
403 posts, read 1,101,421 times
Reputation: 209
Short sales are the most challenging of all transactions - for all parties involved.

--List price on a short sale is often completely meaningless.
--Number of payments seller has missed is sometimes important...but not always.
--Time on the market is sometimes important...but not always.
--Offer price relative to market value is usually the key...but not always.

I could list 50 other factors that sometimes but not always that may play a large but sometimes small or no role in the outcome. Is the note held by Wells Fargo or Countrywide? Did Countrywide add 200 loss mitigation officers this month or did 200 quit this month? I could write a book on the subject (and it would be out of date by the time you read it).

Truly, the best advice is to try to find an agent that has recent experience representing short sellers or recent experience representing buyers of short sales. If you can find someone with recent experience representing both, you're probably as close to short sale nirvana as anyone can get.
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Old 12-14-2007, 01:32 PM
 
Location: San Antonio
4,146 posts, read 9,614,275 times
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If it's a conventional loan, they'll look at taking about 87% of the loan, depending on the current market value. They can't have much equity in the house though. You need to figure in the realtor fees (6%) and closing costs (ballpark 2%).
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Old 12-14-2007, 04:27 PM
 
Location: Florida
26 posts, read 19,672 times
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The original List price was already below the amount owed....

Quote:
Originally Posted by kevcrawford View Post
If it's a conventional loan, they'll look at taking about 87% of the loan, depending on the current market value. They can't have much equity in the house though. You need to figure in the realtor fees (6%) and closing costs (ballpark 2%).
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Old 12-14-2007, 11:17 PM
 
Location: Palm Coast, Fl
2,249 posts, read 8,289,139 times
Reputation: 1005
Eric, can't give you a rep again! What the heck!
Here in my area we have Realtors just picking out a number that has nothing to do with the bank approving it or not. The reasoning is that there needs to be a contract brought in until the bank will give an 'indication' of the range they would accept.
It depends on the bank, depends on how old the loan is (if the bank has already made enought interest on the loan) depends on who the bank has handling it for them, depends on... and the it depends on... you name it. They are all different.
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Old 12-15-2007, 12:47 PM
 
Location: Dallas/Fort Worth, Texas
4,170 posts, read 13,935,507 times
Reputation: 2607
The one upside about making loowwwww offers is that you are dealing with the bank where no emotions are involved. They just look at the bottom line. As opposed to a homeowner, they get very emotional and may just decide not to sell to you if your offer is too low.
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Old 12-19-2007, 12:30 PM
 
Location: Florida
26 posts, read 19,672 times
Reputation: 13
We just made a low offer that was highest of any previous offers and the bank came back with a # that is higher than the list price ?!?!?!

Are they crazy?

Now their agent is telling us that the Lender decided to put up the home for Auction in January. How is this even possible if the home has not foreclosed yet ???? ....It is still a short sale.
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Old 12-19-2007, 12:58 PM
 
284 posts, read 1,574,625 times
Reputation: 163
I bought a short sale recently. The bank ended up accepting 30% LESS than the seller owed on his mortgage.
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