Useful rule of thumb..average cost to foreclose 55 to 70 K
Short sale offers of less than average loss more likely accepted.
Offers should stress buyer's committment and patience with short sale process. This may prevail over a higher offer with less committment.
Buyers be advised that banks will likely retain right to have seller accept other offers (offer, not back-up) even after a short sale offer accepted. Bank name isn't on the sales contract.
For those selling short:
A waiver of a security mutually agreed to between the lender and borrower (short seller) to avoid foreclosure may result in a secured debt becoming recourse debt (unsecured).
Original purchase money loans, including junior liens ,are protected from deficiency judgements in a non-judicial foreclosure situation by anti-deficiency laws. Borrowers lose that protection for subsequent loans on the property like second mortgages and refis of the original loan.
Consult expert advice if your a short seller to understand possibilities of future attachment of personal assets and taxation issues.
Buyers,this is a great time in California to buy a short sale property if you plan on living in the residence at least 5 years. Take advantage of historically still low interest rates, possibly far more important than a few thousand dollars in lower price if loan held to term.
Gary Ginsberg
Realtor
888 893 8595
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