Question for the bulls

[SD Realtor]

Some quick facts of recent trannies I have closed that were short sales.

1 – There is not a single case where a second received anywhere close to full value on the loan.

2 – Just closing one in Vista. Second is getting about 18% of the total balance of which half of it is coming from the first and the buyer and buyers agent are coming in with the balance.

3 – From what I have seen the firsts generally offer the seconds about 3% of the balance. The seconds usually demand much more.

Most seconds do not choose to foreclose because of the existing risk. They then not only become responsible for the first, and the property taxes, and IRS liens, and other liens but it is simply not even close to profitable for them to do so because if it was they would be flipping properties right and left.

************

If you want to check sdrs statistics guys, he does do alot of short sales so what he does say about the process carries alot more real life experience and truth then most internet articles and speculative statements made by posters. I do a few and cannot disagree with what he says at all.

[CA renter]

[quote=sdrealtor]CAR
There is lots of potential shadow inventory but not as much as the most bearish hope there is and it is being handled in a large variety of ways such that much of it will never see the open market. It is also being doled out very slowly so as not to crush the market. A market is being masterfully manipulated.

Seconds can foreclose but if they are sold out (i.e. completely underwater) they get nothing and lose their right no pursue for deficiency because of 580b (the one action rule). If the 1st forecloses and the 2nd is purchase money they are SOL. If the borrower declares BK they are SOL also. If it is a recourse loan they can hang out there and some day try to collect on an unsecured loan which aint the eaisest thing in the world to do. They are generally better off getting whatever they can today and most understand that.[/quote]

Yes, I totally understand that. It was just mentioned earlier in the thread that seconds are not allowed (?) to foreclose. Right now, it’s not to their benefit at all, and it’s more advantageous for them to just take what they can get…even if it’s just $1,000 from the govt (isn’t that one of the programs?).

If they do foreclose, they have to buy out the first in order to control the property. There is no reason for them to foreclose, for the most part, in this market. Just clarifying for those who might think seconds **cannot** foreclose. They can and will, if they can get more for it that way.

I have no issues with what sdr has posted. What he’s posted aligns with what I’ve seen and heard, too.

[CA renter]

[quote=sdrealtor]CAR
There is lots of potential shadow inventory but not as much as the most bearish hope there is and it is being handled in a large variety of ways such that much of it will never see the open market. It is also being doled out very slowly so as not to crush the market. A market is being masterfully manipulated.

Seconds can foreclose but if they are sold out (i.e. completely underwater) they get nothing and lose their right no pursue for deficiency because of 580b (the one action rule). If the 1st forecloses and the 2nd is purchase money they are SOL. If the borrower declares BK they are SOL also. If it is a recourse loan they can hang out there and some day try to collect on an unsecured loan which aint the eaisest thing in the world to do. They are generally better off getting whatever they can today and most understand that.[/quote]

Yes, I totally understand that. It was just mentioned earlier in the thread that seconds are not allowed (?) to foreclose. Right now, it’s not to their benefit at all, and it’s more advantageous for them to just take what they can get…even if it’s just $1,000 from the govt (isn’t that one of the programs?).

If they do foreclose, they have to buy out the first in order to control the property. There is no reason for them to foreclose, for the most part, in this market. Just clarifying for those who might think seconds **cannot** foreclose. They can and will, if they can get more for it that way.

I have no issues with what sdr has posted. What he’s posted aligns with what I’ve seen and heard, too.

[CA renter]

[quote=sdrealtor]CAR
There is lots of potential shadow inventory but not as much as the most bearish hope there is and it is being handled in a large variety of ways such that much of it will never see the open market. It is also being doled out very slowly so as not to crush the market. A market is being masterfully manipulated.

Seconds can foreclose but if they are sold out (i.e. completely underwater) they get nothing and lose their right no pursue for deficiency because of 580b (the one action rule). If the 1st forecloses and the 2nd is purchase money they are SOL. If the borrower declares BK they are SOL also. If it is a recourse loan they can hang out there and some day try to collect on an unsecured loan which aint the eaisest thing in the world to do. They are generally better off getting whatever they can today and most understand that.[/quote]

Yes, I totally understand that. It was just mentioned earlier in the thread that seconds are not allowed (?) to foreclose. Right now, it’s not to their benefit at all, and it’s more advantageous for them to just take what they can get…even if it’s just $1,000 from the govt (isn’t that one of the programs?).

If they do foreclose, they have to buy out the first in order to control the property. There is no reason for them to foreclose, for the most part, in this market. Just clarifying for those who might think seconds **cannot** foreclose. They can and will, if they can get more for it that way.

I have no issues with what sdr has posted. What he’s posted aligns with what I’ve seen and heard, too.

[CA renter]

[quote=sdrealtor]CAR
There is lots of potential shadow inventory but not as much as the most bearish hope there is and it is being handled in a large variety of ways such that much of it will never see the open market. It is also being doled out very slowly so as not to crush the market. A market is being masterfully manipulated.

Seconds can foreclose but if they are sold out (i.e. completely underwater) they get nothing and lose their right no pursue for deficiency because of 580b (the one action rule). If the 1st forecloses and the 2nd is purchase money they are SOL. If the borrower declares BK they are SOL also. If it is a recourse loan they can hang out there and some day try to collect on an unsecured loan which aint the eaisest thing in the world to do. They are generally better off getting whatever they can today and most understand that.[/quote]

Yes, I totally understand that. It was just mentioned earlier in the thread that seconds are not allowed (?) to foreclose. Right now, it’s not to their benefit at all, and it’s more advantageous for them to just take what they can get…even if it’s just $1,000 from the govt (isn’t that one of the programs?).

If they do foreclose, they have to buy out the first in order to control the property. There is no reason for them to foreclose, for the most part, in this market. Just clarifying for those who might think seconds **cannot** foreclose. They can and will, if they can get more for it that way.

I have no issues with what sdr has posted. What he’s posted aligns with what I’ve seen and heard, too.

[CA renter]

[quote=sdrealtor]CAR
There is lots of potential shadow inventory but not as much as the most bearish hope there is and it is being handled in a large variety of ways such that much of it will never see the open market. It is also being doled out very slowly so as not to crush the market. A market is being masterfully manipulated.

Seconds can foreclose but if they are sold out (i.e. completely underwater) they get nothing and lose their right no pursue for deficiency because of 580b (the one action rule). If the 1st forecloses and the 2nd is purchase money they are SOL. If the borrower declares BK they are SOL also. If it is a recourse loan they can hang out there and some day try to collect on an unsecured loan which aint the eaisest thing in the world to do. They are generally better off getting whatever they can today and most understand that.[/quote]

Yes, I totally understand that. It was just mentioned earlier in the thread that seconds are not allowed (?) to foreclose. Right now, it’s not to their benefit at all, and it’s more advantageous for them to just take what they can get…even if it’s just $1,000 from the govt (isn’t that one of the programs?).

If they do foreclose, they have to buy out the first in order to control the property. There is no reason for them to foreclose, for the most part, in this market. Just clarifying for those who might think seconds **cannot** foreclose. They can and will, if they can get more for it that way.

I have no issues with what sdr has posted. What he’s posted aligns with what I’ve seen and heard, too.

[SD Realtor]

As usual CAR you have it correct. There also are investors out there who do indeed purchase seconds. Every now and then you will actually see a second foreclose on the courthouse steps but the numbers are VERY VERY low. There are other private auctions that have seconds foreclosing every now and then as well.

[SD Realtor]

As usual CAR you have it correct. There also are investors out there who do indeed purchase seconds. Every now and then you will actually see a second foreclose on the courthouse steps but the numbers are VERY VERY low. There are other private auctions that have seconds foreclosing every now and then as well.

[SD Realtor]

As usual CAR you have it correct. There also are investors out there who do indeed purchase seconds. Every now and then you will actually see a second foreclose on the courthouse steps but the numbers are VERY VERY low. There are other private auctions that have seconds foreclosing every now and then as well.

[SD Realtor]

As usual CAR you have it correct. There also are investors out there who do indeed purchase seconds. Every now and then you will actually see a second foreclose on the courthouse steps but the numbers are VERY VERY low. There are other private auctions that have seconds foreclosing every now and then as well.

[SD Realtor]

As usual CAR you have it correct. There also are investors out there who do indeed purchase seconds. Every now and then you will actually see a second foreclose on the courthouse steps but the numbers are VERY VERY low. There are other private auctions that have seconds foreclosing every now and then as well.

[sdrealtor]

CAR
Just got an email on a bulk sale opportunity in NCC. I’m too busy to f/u but I thought you might be interested in invesitgating it. Will send more information via private message.

[sdrealtor]

CAR
Just got an email on a bulk sale opportunity in NCC. I’m too busy to f/u but I thought you might be interested in invesitgating it. Will send more information via private message.

[sdrealtor]

CAR
Just got an email on a bulk sale opportunity in NCC. I’m too busy to f/u but I thought you might be interested in invesitgating it. Will send more information via private message.

[sdrealtor]

CAR
Just got an email on a bulk sale opportunity in NCC. I’m too busy to f/u but I thought you might be interested in invesitgating it. Will send more information via private message.

[Author]

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