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Posted by Tom on December 31, 2006 at 11:12:01:
In Reply to: Re: What qualifies a property for a short sale? posted by joe green on December 30, 2006 at 15:11:30:
A short sale can be done on properties with equity, but, you stated that "you might not get as much as you are looking for". Do you mean, you might not get as little as you are looking for? Also, I figured if you typically try to short sale a property for 60 to 70 cents on a dollar, wouldn't it be to the lenders best interest to accept that offer even if there is a some equity? If the bank accepts a short sale on a property that has no equity, then they are potentially going to lose a lot more money. As appose to a property that may have 20% equity and you short sale it at 70% LTV. I do understand the numbers must work for the lender. But, hypothetically, if there are two identical properties under the same lender, one has no equity and the other has 20% equity, you can short sale both at the same price and the lender will lose less on the 2nd property. Anyway, I see short sale information and advertisement everywhere but, primarily for properties with very little or no equity.
