How many ways can a seller do a bankruptcy short sale in Sacramento? Turns out, quite a few. There's a new game in town, too, in which the Trustee of the bankruptcy is getting paid bazooka bucks ($15K to $50K) to sell a short sale during the bankruptcy. I see drawbacks to that, though, because it would seem to limit the number of buyers for that short sale. It would mean a buyer has to pay a cash premium, but the short sale bank will still want market value. The premium, I am informed, cannot be financed.
The Trustee fee premium is not paid out of the proceeds of sale by the seller, so that fee has nothing to do with bank approval but more to do with the appeal of the home to the buyer. Who would pay way over market value by $15,000 to $50,000 in cash like that for a home? I don't know, but I suppose some buyers would. I asked a bankruptcy lawyer what was I missing in my analysis. He insinuated that some buyers might pay the Trustee fee premium if they were desperate enough and that some Trustees are evidently looking at bankruptcy short sales as a way to make fast cash.
There are other alternatives, though, to doing a Sacramento bankruptcy short sale. Other choices that might be better for the seller overall. Read more in my personal blog today about Bankruptcy and Short Sales in Sacramento.
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