Rustico – I understood your comment. It was funny. I could think of other savvy things they could’ve done, but won’t say here, just in case they come this way – wouldn’t want to give them any ideas – but discussed on other threads – I think a realtor in Temecula had a blog about it that was discussed.
In any case, the first is 1.3, I just don’t know how low the first would go to take a loss AND give some to the second.
Of course there could be someone eager to part w/their money and offer 1.3 for that place. Shortage of fools there are not. Nice place, but in today’s market, not for 1.3. Even at peak, 1.7 had that place sitting for a looong time before the Swans and the bank’s free money met w/Armstrong cash-back to pull it off.
According to the realtor at the open house, he had some offers over 995k. Didn’t say how much over. I would say even being generous, say they got someone foolish enough to offer 1.3, you were the owner of the first. Why would you give any of it to the second when you could foreclose and try to sell it for 1.3 on your own – maybe even w/some government help and write-off to boot.
So why would the second cooperate to get nothing. There must be some tax implications for the second when there’s a foreclosure that the bank can benefit from. I don’t know. Just so few short sales happen and usually the hold up is the second. I’ve seen offers made that were reasonable and the second still wouldn’t go for it. Made no sense. Something is better than nothing, yet…
I don’t know. That’s why I said, unless they get 1.5 and the first walks away w/their 1.3 and 200k can go to second and tell them half is better than nothing and that’s what you get if it goes to foreclosure, second would be persuaded to cooperate.
But I’ve seen other places for a million w/a view just as nice. So anything over a million is just crazy.
