:help
Have a 1 year new 8000 sqft 3 level home with everything in it purchased at 1,039,000 on a half acre in a new community in Ashburn, VA that we have had listed for 4 months steadily dropping the price to no avail. Comps are at approximately 1 million and we just dropped price to 895,000 knowing we won’t be able to make next payment. We how 859,000 on the first and 103,000 on the second both w/ GMAC.
Suggestions…
Thanks in advance.
walk
without even knowing your street,those properties will go for less than 500k within 12 months
my 2 cents
Robert A. Doncaster, Jr.
Import/Export Entrepreneur & Investor
*** DO YOUR HOMEWORK ***
Chicago Illinois USA
& sometimes Salzburg, Austria
Have an EXPERIENCED investor short it! Not a difficult thing to do.
Mark P
short saleing this one will be difficult,.i thought about it initially but most investors will past,even if you get at a decent price it wont be worth more than 500k within the next 2 years…generally VA will be a BAD state to invest in GOOD areas…
even renting it out in the future will be bad deal…
this will be a BANK REO
sorry about the bad news…
you may find an EXPERIENCED investor but most will pass on it,
There’s a “paycheck-to-paycheck” margin on which many people are operating each month…there is an economic crisis going on now kiddies…
The good $$ now is in bad areas and the bad $$$ is in good areas…
my 2 cents
Robert A. Doncaster, Jr.
Import/Export Entrepreneur & Investor
*** DO YOUR HOMEWORK ***
Chicago Illinois USA
& sometimes Salzburg, Austria
Who said anything about holding the property? Who said that an invesor would be the one purcahsing in the property? These are all assumptions that you have made. If this was my territory, I would short the property (given it would be worth my while and since I have not looked at the properties comps, I can not make that decision) contact all of my potential buyers (and also market for potential buyers) and constuct a dbl closing. Not a difficult procedure to carrry out and it has absoltely nothing to do with you opinion of VA RE market in 12 months from now.
When I used the word “experienced” I ment an investor who has worked and succesfully completed and closed SS’s. Not someone who would be the end buyer.
i agree … a double close would be nice,but i dont think it will happen … i just dont think a SS will work, this will be a REO…
my reason…many folks wanted that new COOL “millionaire” home and will get burned in the ARM…its psychological…many cant afford it,its the old jones keeping up with the jones,and the last couple years it was even easier to keep up with the vanderbuilts…
i do believe u should know your market from 12 months from now…sometimes i just dont want something to bite me back in the ass,
my 2 cents
Robert A. Doncaster, Jr.
Import/Export Entrepreneur & Investor
*** DO YOUR HOMEWORK ***
Chicago Illinois USA
& sometimes Salzburg, Austria
I’m not entirely sure we are experiencing an economic down turn. The fact that some people got themselves into homes/loans which they cannot afford does not signal economic catastrophe – just stupidity.
They have some money. They still have their jobs (some). In the end they will walk away from this ordeal and start over.
i agree … a double close would be nice,but i dont think it will happen … i just dont think a SS will work, this will be a REO…
my reason…many folks wanted that new COOL “millionaire” home and will get burned in the ARM…its psychological…many cant afford it,its the old jones keeping up with the jones,and the last couple years it was even easier to keep up with the vanderbuilts…
i do believe u should know your market from 12 months from now…sometimes i just dont want something to bite me back in the ass,
u need to widen your reading
do your homework
my 2 cents
Robert A. Doncaster, Jr.
Import/Export Entrepreneur & Investor
*** DO YOUR HOMEWORK ***
Chicago Illinois USA
& sometimes Salzburg, Austria
I am not sure what Bizarrefun is refering to when he says “you need to epand your reading”
… it must be another one of his assumptions.
You can do this as I explained and it is not a difficult thing to do. Whether or not it is done is yet to be determined.
this topic has run its course!
thats all I have to say
theres no assumptions just research… yes some folks are stupid but the economy is ready to be busted,the days of appreciation are over,the appraised values are going to plummet,its staring u in the face…open your eyes
some of these investors on this forum are really lost or will be lost,i am not referring to u mparker,just a blanket statement,they will wake up…they need to do their homework…there are great strategies for investors but they need to “retool”…thats why i am getting back in after a long vacation from real estate…there are AMAZING opportunities ahead,better than the past 7 years,the last 7 years were great …but the next 7 years will be even better
btw my “assumptions” are fact based research,been doing it over 20 years,very rarely i have been wrong,
my 2 cents
Robert A. Doncaster, Jr.
Import/Export Entrepreneur & Investor
*** DO YOUR HOMEWORK ***
Chicago Illinois USA
& sometimes Salzburg, Austria
I do understand what assumptions are based on, thank you for informing me. If you read the initial post, you would remember that it was concerning a solution to a problem this particular person is in. I gave him a solution. You solution was to walk if I am not mistaken. Yes he could walk from this home and bury his credit if he wishes. But why, when there is an easy solution to the problem.
Your outlook on the enconomy should be based on facts, as you say it is. Since we are on the topic onthe ecomony, you should understand that all markets have cycles and one market is not linked to another. What happens in your market does not affect what is happening in my market, so to speak. And yes we could rant about the subprime industry creating all of this mess but that is just the tip of the iceberg. So yes times may be tough in “some” markets but there are still plenty of appreacaiting markets in our economy.
Determining where each market is in its cycle is not a difficult thing to do, as you probably know.
Lets stay on topic here. This post was refering to a solution, not your outlook the VA economy.
Mark
Quite aside from the multitude of ‘my 2 cents worth’ of advice…
… man, was THAT annoying!!..
All real estate transactions are based on the ‘greater fool theory’… that a greater fool than you will come along to bail you out. And while Donald Trump has… heretofore… made it work for him, the theory is very valid.
So you need a buyer, and the only questions are at what price point will a buyer be found, and will the bank agree to sell it at that price point.
As a former appraiser I cast a very jaundiced eye at ‘comparables’. A comp is for financing first, if you can’t find a buyer at the ‘appraised price’ than I don’t care what the comps say. As you have apparently found out.
Keep dropping the price… ignore the bank at this point for as long as possible. Once you have FOUND a buyer THEN contact the bank and lay it all out for them. They will either say yes, or no. If no, you are no worse off than you are now. If yes, well then Hallelujah.
An auction may also work. Auctions, properly structured and conducted, provide the appearance of a bargain and can be a tremendous draw. If you go with this route, go with a professional.
Luck.
Also, keep in mind that you HAVE TIME. It may help to understand where the bank is coming from so they don’t freak you out unnecessarily.
[]They want their money. Everything they do will be with this goal in mind.
[]They are being inundated with property. And they know that they ain’t seen nothin’ yet.
[]They may, or they may not, cut you slack with your payments. You may, or may not, be able to restructure the loan… move some payments to the end of the loan… or some other workaround. If they offer this do not turn it down… keep your goal in mind… to get OUT of this place.
[]According to Virginia law (which I do not know) you will have some time to correct any deficiency. And some time will pass before they even file a NOD. I had one client whose bank ignored her for seven months after the NOD was filed!! They threatened her no end… but didn’t take it to auction. The auction notice was filed over, and over, and over. And postponed over, and over, and…
And understand that your state of mind may be EXTREMELY frazzled. KEEP YOUR WITS ABOUT YOU. Do NOT panic!!!
And one more thing.
When I say ‘ignore the bank’ I do not mean to keep them in the dark!! Tell them that you are having problems, tell them that you need their help, tell them you’re trying.
Just don’t let their threats impair your judgment!!
more good advice.
whatever way you guys want to dice it up it will still be a pre-foreclosure,the bank may agree to something,unless the owner gets more $$$$$ it WILL EVENTUALLY BE A FORECLOSURE,
p.s. no sane EXPERIENCED person (buyer/investor) will buy this specific property in this market…wait 6-12 months and pick up for peanuts,thats why i say know your neighborhood/city/state!!! the comps for this neighborhood will fall…it will happen…whether u like my posts or not,they are reality!!!
btw, i believe in helping others but some things need to work themselves out without my interference…“help your neighbors but keep out of their affairs!!!”
my 2 cents
Robert A. Doncaster, Jr.
Import/Export Entrepreneur & Investor
*** DO YOUR HOMEWORK ***
Chicago Illinois USA
& sometimes Salzburg, Austria
I wouldn’t bother with a shortsale in this market. When the market goes south the million dollar homes don’t move for beans.
To the o/p: Have you considered giving the bank the deed in leiu of foreclosure?
great advice!
bizarrefun is very correct in all that he has said. To much risk in such a bad market = nogo