I think the lender is going to lose their ass on this one. If the property was exposed to the market by two agents and after reasonable exposure came up with an offer, what makes a lender think they’re going to do any better by:
– spending the money to foreclose
– spending the money to secure the house and maintain it
– spending the money on a new broker, only to have them slap a “FORECLOSURE SALE” tag on it in the MLS.
Time is not on their side, and meanshile they have an unperforming asset on their books.
There’s no way the lender’s going net more out of this deal by taking it back and they’re high if they think otherwise. They should have signed off and moved on. They might have had a chance collecting on the deficiency under a short sale; burying that borrower by another $100k merely guarantees they’ll never see a dime out of him.
