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  • August 4, 2009 at 11:57 AM #440812
    teaboy
    Participant

    Thanks, UR.
    The wikipedia definition: A Forced Sale of Real Estate is an action taken in a civil court forcing the owners to sell the property at issue and divide the profits. The profits are divided, generally under a reliance damages theory, that would best restore the owners to the position they would have been in had the contract never been entered into.
    http://en.wikipedia.org/wiki/Distress_sale

    So is the above property a Short Sale or Distress Sale?

    TB

    August 4, 2009 at 12:35 PM #441236
    SK in CV
    Participant

    To elaborate on what urbanrealtor said…

    [quote=urbanrealtor]If all liens and fees total more than the sale price, then it could be a short.

    Sometimes sale price is below FMV (especially for shorts).

    If the seller is behind on payments but has equity, then it is a distress sale, not a short sale.

    By definition, no lender approval would be required.[/quote]

    If any obligation due at sale (including, but not limited to all secured debt, 1st TD, junior TD’s, HELOCs, add on fees and interest related to that debt, delinquent taxes, commissions and fees) has to be compromised in order for the transaction to close, it’s a short sale. If someone doesn’t get all their money due, it’s a short sale.

    August 4, 2009 at 12:35 PM #440632
    SK in CV
    Participant

    To elaborate on what urbanrealtor said…

    [quote=urbanrealtor]If all liens and fees total more than the sale price, then it could be a short.

    Sometimes sale price is below FMV (especially for shorts).

    If the seller is behind on payments but has equity, then it is a distress sale, not a short sale.

    By definition, no lender approval would be required.[/quote]

    If any obligation due at sale (including, but not limited to all secured debt, 1st TD, junior TD’s, HELOCs, add on fees and interest related to that debt, delinquent taxes, commissions and fees) has to be compromised in order for the transaction to close, it’s a short sale. If someone doesn’t get all their money due, it’s a short sale.

    August 4, 2009 at 12:35 PM #441408
    SK in CV
    Participant

    To elaborate on what urbanrealtor said…

    [quote=urbanrealtor]If all liens and fees total more than the sale price, then it could be a short.

    Sometimes sale price is below FMV (especially for shorts).

    If the seller is behind on payments but has equity, then it is a distress sale, not a short sale.

    By definition, no lender approval would be required.[/quote]

    If any obligation due at sale (including, but not limited to all secured debt, 1st TD, junior TD’s, HELOCs, add on fees and interest related to that debt, delinquent taxes, commissions and fees) has to be compromised in order for the transaction to close, it’s a short sale. If someone doesn’t get all their money due, it’s a short sale.

    August 4, 2009 at 12:35 PM #440832
    SK in CV
    Participant

    To elaborate on what urbanrealtor said…

    [quote=urbanrealtor]If all liens and fees total more than the sale price, then it could be a short.

    Sometimes sale price is below FMV (especially for shorts).

    If the seller is behind on payments but has equity, then it is a distress sale, not a short sale.

    By definition, no lender approval would be required.[/quote]

    If any obligation due at sale (including, but not limited to all secured debt, 1st TD, junior TD’s, HELOCs, add on fees and interest related to that debt, delinquent taxes, commissions and fees) has to be compromised in order for the transaction to close, it’s a short sale. If someone doesn’t get all their money due, it’s a short sale.

    August 4, 2009 at 12:35 PM #441165
    SK in CV
    Participant

    To elaborate on what urbanrealtor said…

    [quote=urbanrealtor]If all liens and fees total more than the sale price, then it could be a short.

    Sometimes sale price is below FMV (especially for shorts).

    If the seller is behind on payments but has equity, then it is a distress sale, not a short sale.

    By definition, no lender approval would be required.[/quote]

    If any obligation due at sale (including, but not limited to all secured debt, 1st TD, junior TD’s, HELOCs, add on fees and interest related to that debt, delinquent taxes, commissions and fees) has to be compromised in order for the transaction to close, it’s a short sale. If someone doesn’t get all their money due, it’s a short sale.

    August 4, 2009 at 2:29 PM #441271
    urbanrealtor
    Participant

    That property has 2 liens currently showing.

    The first is $462k and the second is $300k (or so).

    The FMV shows up aroun $550k-$600k.
    (of course there could be some mitigating factor that skews that number but thats where it looked to me)

    This property is $165k-$200k upside down before even looking at costs associated with settlement.

    This short would net lienholders about $500k.

    Sucks to be the lienholders.

    On the other side, this would be an easy property to do a short sale on.

    August 4, 2009 at 2:29 PM #440867
    urbanrealtor
    Participant

    That property has 2 liens currently showing.

    The first is $462k and the second is $300k (or so).

    The FMV shows up aroun $550k-$600k.
    (of course there could be some mitigating factor that skews that number but thats where it looked to me)

    This property is $165k-$200k upside down before even looking at costs associated with settlement.

    This short would net lienholders about $500k.

    Sucks to be the lienholders.

    On the other side, this would be an easy property to do a short sale on.

    August 4, 2009 at 2:29 PM #440667
    urbanrealtor
    Participant

    That property has 2 liens currently showing.

    The first is $462k and the second is $300k (or so).

    The FMV shows up aroun $550k-$600k.
    (of course there could be some mitigating factor that skews that number but thats where it looked to me)

    This property is $165k-$200k upside down before even looking at costs associated with settlement.

    This short would net lienholders about $500k.

    Sucks to be the lienholders.

    On the other side, this would be an easy property to do a short sale on.

    August 4, 2009 at 2:29 PM #441200
    urbanrealtor
    Participant

    That property has 2 liens currently showing.

    The first is $462k and the second is $300k (or so).

    The FMV shows up aroun $550k-$600k.
    (of course there could be some mitigating factor that skews that number but thats where it looked to me)

    This property is $165k-$200k upside down before even looking at costs associated with settlement.

    This short would net lienholders about $500k.

    Sucks to be the lienholders.

    On the other side, this would be an easy property to do a short sale on.

    August 4, 2009 at 2:29 PM #441443
    urbanrealtor
    Participant

    That property has 2 liens currently showing.

    The first is $462k and the second is $300k (or so).

    The FMV shows up aroun $550k-$600k.
    (of course there could be some mitigating factor that skews that number but thats where it looked to me)

    This property is $165k-$200k upside down before even looking at costs associated with settlement.

    This short would net lienholders about $500k.

    Sucks to be the lienholders.

    On the other side, this would be an easy property to do a short sale on.

    August 4, 2009 at 2:56 PM #441453
    teaboy
    Participant

    Thanks again UR.
    Awesome. Bought in 1989 for $200k, sold 20 years later for 3 times the price at a loss of $200k. Only in America.

    Where the #$%& did $600k go? That’s $30k/year. I hope they blew it on something worthwhile like coke and hookers and not a new vw jetta…

    Curiously, tho, the MLS remarks read “Not a short sale”. Is that perhaps a case of self-delusion?

    TB

    August 4, 2009 at 2:56 PM #441210
    teaboy
    Participant

    Thanks again UR.
    Awesome. Bought in 1989 for $200k, sold 20 years later for 3 times the price at a loss of $200k. Only in America.

    Where the #$%& did $600k go? That’s $30k/year. I hope they blew it on something worthwhile like coke and hookers and not a new vw jetta…

    Curiously, tho, the MLS remarks read “Not a short sale”. Is that perhaps a case of self-delusion?

    TB

    August 4, 2009 at 2:56 PM #441281
    teaboy
    Participant

    Thanks again UR.
    Awesome. Bought in 1989 for $200k, sold 20 years later for 3 times the price at a loss of $200k. Only in America.

    Where the #$%& did $600k go? That’s $30k/year. I hope they blew it on something worthwhile like coke and hookers and not a new vw jetta…

    Curiously, tho, the MLS remarks read “Not a short sale”. Is that perhaps a case of self-delusion?

    TB

    August 4, 2009 at 2:56 PM #440677
    teaboy
    Participant

    Thanks again UR.
    Awesome. Bought in 1989 for $200k, sold 20 years later for 3 times the price at a loss of $200k. Only in America.

    Where the #$%& did $600k go? That’s $30k/year. I hope they blew it on something worthwhile like coke and hookers and not a new vw jetta…

    Curiously, tho, the MLS remarks read “Not a short sale”. Is that perhaps a case of self-delusion?

    TB

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