Forum Replies Created
-
AuthorPosts
-
gn
Participantmy guess they will list it at just enough to make themselves whole and it will sell in a few days, it's not their job to make some walking money for the defaulted borrower
temeculaguy, when you said "enough", you meant enough to:
1. Make themselves whole, and
2. Cover the late payments, foreclosure fees & broker fees
Right ? You said you didn’t have enough cash, can’t you buy it from the lender (as an REO) using conventional financing ?
I was looking at one that went up at 200k below market with 20 days before it foreclosed and it wasn't a short sale they actually had the equity
For a buyer who has the cash and wants to own as soon as possible but is wary of the downside potentials, the listing mentioned by temeculaguy might be an ideal purchase.
I'm wondering. How often does such an opportunity come up ? My guess is: rarely. But, maybe someone know more about this. Any comments ?
Participantthe holder of the 2nd/HELOC foreclosing would serve no other purpose other than puting themselves in a better position to light a fire inder the 1st leinholder in hopes of getting the house to market and sold quickly
El Jefe, thanks for the information. The foreclosure process costs money. Are you saying that the amount spent on foreclosing is small enough & worth the benefit of getting the 1st lienholder to act quickly ?
Participantthe holder of the 2nd/HELOC foreclosing would serve no other purpose other than puting themselves in a better position to light a fire inder the 1st leinholder in hopes of getting the house to market and sold quickly
El Jefe, thanks for the information. The foreclosure process costs money. Are you saying that the amount spent on foreclosing is small enough & worth the benefit of getting the 1st lienholder to act quickly ?
ParticipantTheir focus is always on "Well, I haven't lost anything yet because I haven't sold."
The funny thing is, when home prices were going up these people were saying:
"Since I bought my primary residence 3 years ago, I've made $300k."
Even though, they haven't sold. 🙂
ParticipantTheir focus is always on "Well, I haven't lost anything yet because I haven't sold."
The funny thing is, when home prices were going up these people were saying:
"Since I bought my primary residence 3 years ago, I've made $300k."
Even though, they haven't sold. 🙂
Participantno_such_reality,
What is interesting is it sounds like the 2nd took possession through foreclosure and then failed to make the 1st solvent and will in turn have the first lien foreclosed losing their interest
So, is the correct thing for the 2nd lender to do is let the 1st foreclose & hope that there is enough $ after the sale to pay the 2nd lender ?
Participantno_such_reality,
What is interesting is it sounds like the 2nd took possession through foreclosure and then failed to make the 1st solvent and will in turn have the first lien foreclosed losing their interest
So, is the correct thing for the 2nd lender to do is let the 1st foreclose & hope that there is enough $ after the sale to pay the 2nd lender ?
ParticipantIs Zillow worth the cost of their estimates
For properties in California, Zillow's estimates are often higher (a lot higher) than the actual market values.
ParticipantIs Zillow worth the cost of their estimates
For properties in California, Zillow's estimates are often higher (a lot higher) than the actual market values.
Participant>> the 1st is original and the 2nd was a method to get some cash out
It is likely that the 2nd is a recourse loan. Here is a relevant article:
http://www.ocregister.com/ocregister/money/homepage/article_1206268.php
Participant>> the 1st is original and the 2nd was a method to get some cash out
It is likely that the 2nd is a recourse loan. Here is a relevant article:
http://www.ocregister.com/ocregister/money/homepage/article_1206268.php
ParticipantQuietcat,
>> he has no way to save it other than buying it
>> back at the sale. Does this sound correct?Yes. Also, most of that $100k will go toward the fees associated with the foreclosure & the cost of selling the house (i.e. broker’s fees & other selling costs).
Are the 1st & 2nd original loans (i.e. taken out at the time of the purchase) or are they refinance loans ?
I’m asking b/c:
1. The lenders may have a hard time selling that house.
2. The lenders may have to sell the house at undermarket value.
3. Depending on how “conservative” your estimate is, there may not be enough $ from the sale to make the lenders “whole”. In this case, if the loans are refinance loans (recourse loans), the lenders can go after your brother.FYI, original loans are non-recourse loans.
ParticipantQuietcat,
>> he has no way to save it other than buying it
>> back at the sale. Does this sound correct?Yes. Also, most of that $100k will go toward the fees associated with the foreclosure & the cost of selling the house (i.e. broker’s fees & other selling costs).
Are the 1st & 2nd original loans (i.e. taken out at the time of the purchase) or are they refinance loans ?
I’m asking b/c:
1. The lenders may have a hard time selling that house.
2. The lenders may have to sell the house at undermarket value.
3. Depending on how “conservative” your estimate is, there may not be enough $ from the sale to make the lenders “whole”. In this case, if the loans are refinance loans (recourse loans), the lenders can go after your brother.FYI, original loans are non-recourse loans.
Participantarraya,
Thanks for the story. It shows lenders/sellers desperation.
In the future, if you look at rental properties, I would recommend the following formula:
real rent – (0.1 * real rent) – PITI = cashflow.
The 10% is for maintenance/vacancy. The property may look new/good, but, if you’re going to be a landlord in the long run, you will surely have maintenance costs & vacancies.
And, BTW, the PITI above would have to be on a 30-yr fixed mortgage, not an ARM 🙂
-
AuthorPosts
