Are Banks Working with Investors Now on SS?

Foreclosures, Short Sales, Tax Foreclosures
1

Gang:
What are you seeing right now in the past couple of months in the short sale business? Are banks willing to deal and discount the loans for investors?

Are seconds being reasonable and working with investors? Is there a particular percentage of value you see loan companies sticking to these days?

In other words is the ss process still working in todays market?

2

Is anyone working these now?? What are you seeing?

3

last 3 or 4 shortsales I worked,

Bank was allowing the home to go 80-84% of BPO

4

so you are saying if the BPO came in at 105k and the house is worth 120k you get it for 84k 80%

5

yes. In my experience, they are accepting 82-92% of the BPO. Some banks won’t go lower thanb 92%, some 82%, and SOME go lower than that, but most won’t. Sooo… if you can ethically influence the BPO, you can pretty much bank on 82% being a good number in most cases.

6

If banks are accepting 82% or so of the BPO, does that mean that in a case with an 80/20 the second is being bought at 10 cents on the dollar and the first is not budging much off of their position? It seems like with the number of foreclosures and the weakened retail market, that banks would want to unload these properties and be open to taking some discount on the first.

7

Deal I’m currently working, 1st lender on 80/20 has accepted 80% of their loaned amount. 2nd got 11 cents on the dollar. Value of home at the time of the BPO was full loan amount, 1st and 2nd. The BPO agent was very friendly and asked what number I was looking for. My offer was 80% of that number I gave him. They accepted, which works for me.

Lenders will take a discount on the 1st if you present a reason why they should. Even with foreclosures rate as they are lenders are still in no hurry to ‘unload’ these properties. It still amazes me to see how much some of these lenders still want for some of these places. I’ve had offers rejected that later went to sale for less than my offer.

8

In my experience… on 1st and 2nd loans, especially 80/20 loans. THe 1st will accept between 82-92% of the BPO, the 2nd will GET 1,000.00. I’ve seen loan amounts as high as $199K for the 2nd go for $2K.

9

I have 8 deals waiting to go. Does anyone with experience want to help on these? I am in Florida, but anywhere is ok. I can pay! Let me know.

10

daniel186 - I PM’d you

11

where and what type of properties in FL, Daniel?