DOES ANYBODY KNOW WHAT IS THE LOWEST LTV THAT A BANK WILL TAKE ON A SHORTSALE. I’VE BEEN TOLD THAT THEY IF THE LOAN IS A YEAR OR TWO OLD THEY CAN TAKE AS LOW AS 50% IS THIS THE CASE WITH EVEN OLDER LOANS?
ANOTHER QUESTION!
WILL A BANK DO A SHORTSALE IF THERE IS ALREADY EQUITY IN THE PROPERTY.
THANKS IN ADVANCE
Let me start with the easiest question first. If there is enough equity in the property, NO, the bank will not take a shortsale. Why would they accept less than the full amount due if they know that there is enough equity to either a) have a possibility of being outbid by a 3rd party at foreclosure sale, or b) win the property at foreclosure sale, market, and sell for full debt?
To address your 2nd question, nobody here can tell you what the lowest LTV any bank will accept in a shortsale. Every situation is different. It does not matter if the loan is a year old or 10 years old. Age of the mortgage is not a factor. I can tell you if the loan has PMI, it will require approval from the PMI company. In my experience with the most common PMI companies, I.E. MGIC, Triad, Radian, and Old Republic, the usually will want your net offer to be no less than 10% below market value. It’s such a pain in the as trying to deal with them, because they are out of the loop, and don’t understand, or don’t care.
Good Luck,