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Effective Demand
Participant[quote=sdrealtor]I have read all over the Internet that Short Sales benefit no one other than the lisitng agents and that they are just as damaging to one’s credit as a foreclosure. [/quote]
Ok, I’m pretty well versed in this stuff and this is the first time I ever heard the theory that short sales only benefit the listing agent.
[quote=sdrealtor] Relocation forced borrowers to move cross country for family reasons. The short sale was completed with the sellers never missing a single payment. This dispells the myth that you always need to miss payments to get the bank to accept the short sale. The truth is you need to demostrate a hardship case. The bank wrote off about $100,000 of debt which the sellers will not be taxed on federally or statewise.
[/quote]
There is a million variables here. The borrowers either had just one lien or it was a purchase money loan. Also, from the sounds of it, I would bet this is a portfolio loan and not securitized.
The reason why 1 lien OR purchase money matters is because then the loans are effectively non-recourse. If it 1 lien refi then the borrowers are covered by the single action rule. If it is purchase money then it is non-recourse automatically.
Portfolio versus Securitized matters because servicers for securitized loans have a much tighter range of options available to them defined by their PSA’s (which can each be different depending on the pool). A portfolio loan the bank owns and just looking at if the borrower is recourse or not brings the situation to a logical conclusion pretty quickly if it isn’t recourse. There really is no option and its in the banks best interested to get it sold as quickly as possible.
Participant[quote=sdrealtor]I have read all over the Internet that Short Sales benefit no one other than the lisitng agents and that they are just as damaging to one’s credit as a foreclosure. [/quote]
Ok, I’m pretty well versed in this stuff and this is the first time I ever heard the theory that short sales only benefit the listing agent.
[quote=sdrealtor] Relocation forced borrowers to move cross country for family reasons. The short sale was completed with the sellers never missing a single payment. This dispells the myth that you always need to miss payments to get the bank to accept the short sale. The truth is you need to demostrate a hardship case. The bank wrote off about $100,000 of debt which the sellers will not be taxed on federally or statewise.
[/quote]
There is a million variables here. The borrowers either had just one lien or it was a purchase money loan. Also, from the sounds of it, I would bet this is a portfolio loan and not securitized.
The reason why 1 lien OR purchase money matters is because then the loans are effectively non-recourse. If it 1 lien refi then the borrowers are covered by the single action rule. If it is purchase money then it is non-recourse automatically.
Portfolio versus Securitized matters because servicers for securitized loans have a much tighter range of options available to them defined by their PSA’s (which can each be different depending on the pool). A portfolio loan the bank owns and just looking at if the borrower is recourse or not brings the situation to a logical conclusion pretty quickly if it isn’t recourse. There really is no option and its in the banks best interested to get it sold as quickly as possible.
Participant[quote=sdrealtor]I have read all over the Internet that Short Sales benefit no one other than the lisitng agents and that they are just as damaging to one’s credit as a foreclosure. [/quote]
Ok, I’m pretty well versed in this stuff and this is the first time I ever heard the theory that short sales only benefit the listing agent.
[quote=sdrealtor] Relocation forced borrowers to move cross country for family reasons. The short sale was completed with the sellers never missing a single payment. This dispells the myth that you always need to miss payments to get the bank to accept the short sale. The truth is you need to demostrate a hardship case. The bank wrote off about $100,000 of debt which the sellers will not be taxed on federally or statewise.
[/quote]
There is a million variables here. The borrowers either had just one lien or it was a purchase money loan. Also, from the sounds of it, I would bet this is a portfolio loan and not securitized.
The reason why 1 lien OR purchase money matters is because then the loans are effectively non-recourse. If it 1 lien refi then the borrowers are covered by the single action rule. If it is purchase money then it is non-recourse automatically.
Portfolio versus Securitized matters because servicers for securitized loans have a much tighter range of options available to them defined by their PSA’s (which can each be different depending on the pool). A portfolio loan the bank owns and just looking at if the borrower is recourse or not brings the situation to a logical conclusion pretty quickly if it isn’t recourse. There really is no option and its in the banks best interested to get it sold as quickly as possible.
Participant[quote=sdrealtor]I have read all over the Internet that Short Sales benefit no one other than the lisitng agents and that they are just as damaging to one’s credit as a foreclosure. [/quote]
Ok, I’m pretty well versed in this stuff and this is the first time I ever heard the theory that short sales only benefit the listing agent.
[quote=sdrealtor] Relocation forced borrowers to move cross country for family reasons. The short sale was completed with the sellers never missing a single payment. This dispells the myth that you always need to miss payments to get the bank to accept the short sale. The truth is you need to demostrate a hardship case. The bank wrote off about $100,000 of debt which the sellers will not be taxed on federally or statewise.
[/quote]
There is a million variables here. The borrowers either had just one lien or it was a purchase money loan. Also, from the sounds of it, I would bet this is a portfolio loan and not securitized.
The reason why 1 lien OR purchase money matters is because then the loans are effectively non-recourse. If it 1 lien refi then the borrowers are covered by the single action rule. If it is purchase money then it is non-recourse automatically.
Portfolio versus Securitized matters because servicers for securitized loans have a much tighter range of options available to them defined by their PSA’s (which can each be different depending on the pool). A portfolio loan the bank owns and just looking at if the borrower is recourse or not brings the situation to a logical conclusion pretty quickly if it isn’t recourse. There really is no option and its in the banks best interested to get it sold as quickly as possible.
Participant[quote=sd_matt]http://www.realtor.com/realestateandhomes-detail/5821-Jackson_La-Mesa_CA_91942_1102793590
http://www.realtor.com/realestateandhomes-detail/6518-Airoso-Ave_San-Diego_CA_92120_1106426190
p.s. I’d start using Redfin.. more information available to Joe 6 pack’s then through Realtor.com:
http://www.redfin.com/CA/La-Mesa/5821-Jackson-Dr-91942/home/5603014
Participant[quote=sd_matt]http://www.realtor.com/realestateandhomes-detail/5821-Jackson_La-Mesa_CA_91942_1102793590
http://www.realtor.com/realestateandhomes-detail/6518-Airoso-Ave_San-Diego_CA_92120_1106426190
p.s. I’d start using Redfin.. more information available to Joe 6 pack’s then through Realtor.com:
http://www.redfin.com/CA/La-Mesa/5821-Jackson-Dr-91942/home/5603014
Participant[quote=sd_matt]http://www.realtor.com/realestateandhomes-detail/5821-Jackson_La-Mesa_CA_91942_1102793590
http://www.realtor.com/realestateandhomes-detail/6518-Airoso-Ave_San-Diego_CA_92120_1106426190
p.s. I’d start using Redfin.. more information available to Joe 6 pack’s then through Realtor.com:
http://www.redfin.com/CA/La-Mesa/5821-Jackson-Dr-91942/home/5603014
Participant[quote=sd_matt]http://www.realtor.com/realestateandhomes-detail/5821-Jackson_La-Mesa_CA_91942_1102793590
http://www.realtor.com/realestateandhomes-detail/6518-Airoso-Ave_San-Diego_CA_92120_1106426190
p.s. I’d start using Redfin.. more information available to Joe 6 pack’s then through Realtor.com:
http://www.redfin.com/CA/La-Mesa/5821-Jackson-Dr-91942/home/5603014
Participant[quote=sd_matt]http://www.realtor.com/realestateandhomes-detail/5821-Jackson_La-Mesa_CA_91942_1102793590
http://www.realtor.com/realestateandhomes-detail/6518-Airoso-Ave_San-Diego_CA_92120_1106426190
p.s. I’d start using Redfin.. more information available to Joe 6 pack’s then through Realtor.com:
http://www.redfin.com/CA/La-Mesa/5821-Jackson-Dr-91942/home/5603014
ParticipantHave your agent pull sales in the city for the last 6 months, they can get it as a CSV. Then open that in excel and look at Sales Price / List Price for all the properties. That will give you a feel of what type of low balls are working.
Sales Price / Original List Price gives you an idea of how well people are pricing their properties.
Generally speaking, median priced homes go for around list (many REOs go for 103-105% of list because the buyers are rolling closing costs into the loans) because that is where all the demand is.
If you think of a bell curve it is usually the margins where the big price breaks off list happen. But I would say any bank owned home on market over 60-90 days is more likely to be lowballed. But usually (not always) they are pretty responsive to the market because they do BPOs and just match price at or under the market price reported by the BPOs.
ParticipantHave your agent pull sales in the city for the last 6 months, they can get it as a CSV. Then open that in excel and look at Sales Price / List Price for all the properties. That will give you a feel of what type of low balls are working.
Sales Price / Original List Price gives you an idea of how well people are pricing their properties.
Generally speaking, median priced homes go for around list (many REOs go for 103-105% of list because the buyers are rolling closing costs into the loans) because that is where all the demand is.
If you think of a bell curve it is usually the margins where the big price breaks off list happen. But I would say any bank owned home on market over 60-90 days is more likely to be lowballed. But usually (not always) they are pretty responsive to the market because they do BPOs and just match price at or under the market price reported by the BPOs.
ParticipantHave your agent pull sales in the city for the last 6 months, they can get it as a CSV. Then open that in excel and look at Sales Price / List Price for all the properties. That will give you a feel of what type of low balls are working.
Sales Price / Original List Price gives you an idea of how well people are pricing their properties.
Generally speaking, median priced homes go for around list (many REOs go for 103-105% of list because the buyers are rolling closing costs into the loans) because that is where all the demand is.
If you think of a bell curve it is usually the margins where the big price breaks off list happen. But I would say any bank owned home on market over 60-90 days is more likely to be lowballed. But usually (not always) they are pretty responsive to the market because they do BPOs and just match price at or under the market price reported by the BPOs.
ParticipantHave your agent pull sales in the city for the last 6 months, they can get it as a CSV. Then open that in excel and look at Sales Price / List Price for all the properties. That will give you a feel of what type of low balls are working.
Sales Price / Original List Price gives you an idea of how well people are pricing their properties.
Generally speaking, median priced homes go for around list (many REOs go for 103-105% of list because the buyers are rolling closing costs into the loans) because that is where all the demand is.
If you think of a bell curve it is usually the margins where the big price breaks off list happen. But I would say any bank owned home on market over 60-90 days is more likely to be lowballed. But usually (not always) they are pretty responsive to the market because they do BPOs and just match price at or under the market price reported by the BPOs.
ParticipantHave your agent pull sales in the city for the last 6 months, they can get it as a CSV. Then open that in excel and look at Sales Price / List Price for all the properties. That will give you a feel of what type of low balls are working.
Sales Price / Original List Price gives you an idea of how well people are pricing their properties.
Generally speaking, median priced homes go for around list (many REOs go for 103-105% of list because the buyers are rolling closing costs into the loans) because that is where all the demand is.
If you think of a bell curve it is usually the margins where the big price breaks off list happen. But I would say any bank owned home on market over 60-90 days is more likely to be lowballed. But usually (not always) they are pretty responsive to the market because they do BPOs and just match price at or under the market price reported by the BPOs.
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