sdrealtor,
I was just wondering, if the lender forecloses and then puts it on market for ~100K more, why would’nt the seller do the same. Also according to Ramsey’s commentary couple of weeks ago foreclosure costs for the lender is around 5-10% (I don’t remember exactly, but the agent cost itself would be atleast 3%. So why would the lender go through the trouble of foreclosing. Is’nt it in their interest to accept a short sale unless the short sale is > say 15% of what they can sell for.
I’m guessing the best scenario for the lender is for the owner to keep making the payments. So my bet is that they would try to keep the owner solvent and squeeze all interest out of them over the years.
