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My agent is going to lower the price on my home next week. What are lenders typically looking to get on a shortsale? 65%, 75% 80% on loan value? Is there a number that is too low. For instance, if loan amount due is $200k what is a realistic number to expect a lender to accept?
That's not been my experience. There are several short sales in a condo complex that I own in in Riverside County. One short sale recently sold far below the last sold. The last sold was a 30-day escrow (so not outdated) and a smaller unit. It was mindboggling. The unit was 1600 sf., 3 bdrm. and originally sold for 299,900 and they took 84,000 for it. The last sold was a 2 bedroom, 900 sf for 96,000 (which was also a short sale).
It's so hard to say what they're looking for because they're all different.
You need an agent who specializes in short sales and foreclosures. It's a whole different beast. It's like going to a tax attorney for a divorce.
My agent is going to lower the price on my home next week. What are lenders typically looking to get on a shortsale? 65%, 75% 80% on loan value? Is there a number that is too low. For instance, if loan amount due is $200k what is a realistic number to expect a lender to accept?
It depends on a few different factors. Most important among them are the market value of the house and the mortgagor's ability to pay the full amount of the debt. So if you owe $200k, and the market value of the house is $100k, you can't necessarily expect the bank to accept a short sale of that $100k. Especially if they examine your finances and see that you have $350k in a brokerage account, you just bought a new Jaguar, and last years income was $220,000. The bank is more than happy to remind you that you can bring your own money to the closing to pay them off, and are not limited to just the funds provided by the buyer.
In my experience, it depends on the bank, their circumstances, such as how many other defaults do they have going on, how many of those loans are guaranteed by Fannie, and then the circumstances of the seller, and then the condition of the property.
It depends on a few different factors. Most important among them are the market value of the house and the mortgagor's ability to pay the full amount of the debt. So if you owe $200k, and the market value of the house is $100k, you can't necessarily expect the bank to accept a short sale of that $100k. Especially if they examine your finances and see that you have $350k in a brokerage account, you just bought a new Jaguar, and last years income was $220,000. The bank is more than happy to remind you that you can bring your own money to the closing to pay them off, and are not limited to just the funds provided by the buyer.
No WONDER some homes in this area have been selling for what I think, (based on what other similar homes are selling for) is much more than they are really worth. I wonder how the selling price gets recorded in county records? If the seller ends up having to cough up money at the closing in addition to the $100k the buyer pays, does the selling price get recorded as $150K -- even though the market value is $100k?
No WONDER some homes in this area have been selling for what I think, (based on what other similar homes are selling for) is much more than they are really worth. I wonder how the selling price gets recorded in county records? If the seller ends up having to cough up money at the closing in addition to the $100k the buyer pays, does the selling price get recorded as $150K -- even though the market value is $100k?
$100K is the sold price. Whether or not the seller " coughed up" does not change the resale value.
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