Should I consider active foreclosures (short sales) and REO’s in my negotiations with the lender. The foreclosures in my area are about 90% short sales. There are certain areas much worse off then others (like any market) mostly in the poorer areas. Example, with one client I am working with, there are 7 REO’s and 13 current foreclosures all on the same street. Street is about a mile long. I’m thinking I should point this out to the lender in my package (or verbally) but would it be to our advantage.
ABSOLUTELY!
However, you should know that whomever you’re currently dealing with may not have the authority to even consider the state of the area and the number of REO’s & foreclosures. Have they done a BPO or interior appraisal?
If you get resistance, try escalating to a supervisor. Remember to get all your correspondence in writing as often as possible. Summerize your “thoughts” in a letter, email or fax and be prepared to provide CMAs and other documentation of the neighborhood.