Internal Lender Document Gives Insight Into Short Sale Versus Foreclosure
Kevin is flying unaccompanied at present. He’d like to chat about a couple different things today. To start with, we would like to revisit yesterday’s blog concerning HAFA. We talked concerning the lack of effect that HAFA, or anything with four letters, has on the short sale market. With about 15 different people responding yesterday, we discovered exactly zero closed HAFA short sales. So, as we stated yesterday, HAFA is just not a game changer. We even got a remark that acknowledged that a realtor was on day 67 of their 15 day HAFA procedure. That was funny. It has not been impactful to the short sale market despite what others may have claimed.
The second thing that we would like to chat regarding is a little inside document that we were given from a representative of Bank of America. I do not think that this is a Bank of America specific document. I think it is an investor specific document. This form is an impact analysis. We wanted to share a few things with you from this impact analysis. It has the borrowers information, how much the loan total is, the origination amount, the home value today, and the proposal amount. This form also shows what they think the home would sell for as an REO. Nonetheless, here is the shock. The anticipated marketing expenses on this $271,000 home is almost $34,000.
You need to keep this stuff in mind when you are told by your negotiators that they will take the house to foreclosure. The bank will never get more money from an REO. It costs them too much cash to take a residence to foreclosure sale.
One final reminder for our Crush It Short Sale Seminar. Friday, August 13th we are hosting our lecture. You certainly do not want to miss this seminar. It is being taught by guys that are in the trenches closing short sales. So, if you are a Phoenix area realtor or even somebody who understands the importance of this class and is willing to leap on a plane to get some great education in the short sale business, you will not want to miss this lecture.
Get powered up by Kevin and Fred at Short Sale Power Hour by the Short Sale Specialists of Arizona
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