So generally the way short sales work are as follows. When the listing agent receives an offer, before the offer is submitted to the lender, the listing agent gets an estimated HUD from escrow so that the lender can see what things will look like at closing including commissions and closing costs.
For instance, I may receive an offer on a short sale listing I have for say 450k. I get a HUD from escrow that shows after commissions and closing costs associated with the sellers side of the home, including any liens. The lender looks at that and then comes back to me and says, okay we will take 430k for the first mortgage, and 1k for the second. That way everyone knows who needs to come to the table with what at closing. It has already been conveyed to the buyer that the sellers have no money for any repairs requested, etc…
Okay so getting back to this home, that was most likely the case. That the lenders most likely accepted 700k on the first, and about 20k on the second while the other 40k went to closing costs and commissions. Or as you said, the sellers came to the table with cash.
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Yeah the 925k sale in 05 makes me want to hurl. Do you know that home was on the market all of 4 days? I do agree with your optimism about this current sale being a big drop from 06 but my wife says I am only happy when I am crabby so I guess she is right.
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I have been eyeballing the home on Summerwood Ct. It is on a great cul de sac, and it backs up to Jerabak. I have been over there and it is not in the greatest condition inside but that doesn’t matter to me. Unfortunately the guy has not priced it well at all. It is not even worth me lowballing it. It is also a divorce situation which is always unfortunate. I am sure the home will sell if only because I really like it…
