Internal Lender Document Gives Insight Into Short Sale versus Foreclosure
Kevin is flying solo today. He’d like to chat about a couple different things today. Firstly, we would like to re-examine yesterday’s blog about HAFA. We talked about the lack of influence that HAFA, or anything with four letters, has on the short sale market. With about 15 separate people responding yesterday, we found exactly zero closed HAFA short sales. So, as we acknowledged yesterday, HAFA is just not a game changer. We even got a commentary that stated that a realtor was on day 67 of their 15 day HAFA procedure. That was comical. It has not been impactful to the short sale market in spite of what others may have claimed.
The second thing that we would like to chat about is a little internal 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 document is an impact analysis. We wanted to share a few things at you from this impact analysis. It has the borrowers information, how much the loan total is, the origination amount, the home worth today, and the bid amount. This document also shows what they believe the house would sell for as an REO. However, here is the shock. The estimated marketing expenses on this $271,000 home is approximately $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 lender will never get more capital from an REO. It costs them too much money to take a house to foreclosure sale.
One last reminder for our Crush It Short Sale Seminar. Friday, August 13th we are hosting our lecture. You absolutely do not want to miss this lecture. It is being taught by guys that are in the trenches completing short sales. So, if you are a Phoenix locale realtor or even someone who understands the significance of this lecture 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.
If you have questions, get your Short Sale questions answered by Short Sale Specialists.
Watch this and more short sale videos by Kevin and Fred at Short Sale Power Hour
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Watch Kevin and Fred, Short Sale Specialists, on the Short Sale Power Hour. Video for Short Sale Specialists.


Fred Weaver is a founding co-owner of Group 46:10. He has been working in the financing/real estate business for over 7 years. Fred began his real estate career by working for a large wholesale bank as a processor and rate/lock specialist for home mortgages. After 2 years in the business, Fred transferred from the banking side of home loans to the mortgage side. While on the mortgage side of financing, Fred gained experience originating mortgages and processing files for Morgan Capital of Arizona, Inc.
Kevin is a founding co-owner of Group 46:10. He began working in the real estate business in 2007 after spending 8 years working in the finance industry for companies such as Bank One, Green Tree Financial, & GE Capital.