Houses that are default do you just pay the remaining of what is owed or what the house is worth?

Asked by Trina, Oxnard, CA Mon Oct 5, 2009

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Blanca Dover, Agent, Camarillo, CA
Wed May 8, 2013
A short sale means the current owner is trying to sell their home at the current market value in lieu of the bank taking it back through foreclosure proceedings. This helps salvage their credit rating and lifts the burden of their current high mortgage debt.

Here are a few things to keep in mind:
* The price is set by the realtor with a CMA (comparative market analysis)
* A BPO(Broker Price Opinion) is done by the bank; they will hire an agent to confirm the selling price is of market value as the bank is already taking a loss
* Lowball offers will get a very slow to no response
*Repairs are seldom done as the home owner doesn't have the money and again the bank is already
taking a loss; sometime a credit to the buyer will be offered instead
* Many times once your offer is accepted, the bank will request a fast close date and they will want it to close on time.

Blanca Dover, REALTOR

Century21 Hometown Realty
Cell: 805-427-5646

Website: http://www.blancadover.com
Web Reference:  http://www.blancadover.com
0 votes
Barry Shapiro, Agent, Camarillo, CA
Wed Jan 12, 2011
Trina,

Contact Bonnie as an excellent resource for upcoming REO foreclosure properties with RealtyTrac. To learn more about short sales in Ventura County, visit the Trulia 'Foreclosure Center' tab above under Stats and Trends or visit our website.
0 votes
Bonnie Sterl…, Agent, Simi Valley, CA
Mon Oct 5, 2009
HI Trina,

Barry pretty much answered your specific question but I think it is worth mentioning, since I have been working with foreclosures for a couple of years now, I find that I really must tell people interested in foreclosures that if you are looking at foreclosures as a way to purchase a dream home for 200K below the prices of other homes in the neighborhood, you not likely to find that in our market at this time. The reason is simple. We have an open market with good access it information. If you were willing to purchase a $500,000 home for $300,000 of course, there will be someone else willing and able to pay $400,000 and usually someone else willing to pay $450,000. In our free, open market the Seller or the bank will always want the highest offer. So, you are always competing with other potential buyers no matter what circumstance the of the Seller.
0 votes
Barry Shapiro, Agent, Camarillo, CA
Mon Oct 5, 2009
Hu Trina,

That's an excellent question! If you paid the amount "remaining of what is owed" you would likely be paying more than the property is worth. If you are paying what the house is "worth", that is subjective, based on comparable sales are a (if you are not paying all cash, what the "appraised value" is (or lower). Keep in mind, there is usually a first and a second position lender (or lien-holder), so both mortgagors (for the seller) would absolutely need to agree on the final sales price. Oftentimes this is what makes the "short sale" process so difficult for all involved. Good luck with your home search.
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