One of World's Largest Bank collapses and is bought by JPMorgan
The news is scary when you read about mortgage companies and losses and how preforeclosure short sales fit in.
What does all this mean? Is a recession near? To buy cheap houses or not to buy cheap houses? And how cheap is cheap enough?
JPMorgan is buying Bear Stearns for $2/share. This deal represents a 98.8% discount to its book value as on February 29, 2008. I like that discount but it's pretty scarey wondering how you fit in.
The banks are going to have to start getting rid of more property while people are willing to buy. This kind of news may be making buyers skidish.
Preforeclosure Short Sale or Foreclosure Sale Formula
The banks' formula to accept short sales is 180 days on market before the final REO sale by an end buyer.
In today's market this is not accurate and banks will continue to lose money if they don't change this obvious calculation error that has changed over the last year.
180 DOM gives a false number of what the bank will have into the property at the time of foreclosure sale. It insists that a buyer pay more to keep this house from going to foreclosure sale. The buyer now has the liability and will take the hit if the values keep dropping.
Talk to your loss mitigator about this number in his equation. Ask his/her "what is your value for DOM? Do you really believe that is accurate? You've seen the data I've provided you and it is not close to that." Get him/her to use a much longer number because the house will be on the market much longer than 180 days!
Deb looking out for more ways to get discounts McMillan
Stay tuned here with
The Short Sale Queen®
And Believe in Your Own Success!
deb@shortsalequeen.com
What does all this mean? Is a recession near? To buy cheap houses or not to buy cheap houses? And how cheap is cheap enough?
JPMorgan is buying Bear Stearns for $2/share. This deal represents a 98.8% discount to its book value as on February 29, 2008. I like that discount but it's pretty scarey wondering how you fit in.
The banks are going to have to start getting rid of more property while people are willing to buy. This kind of news may be making buyers skidish.
Preforeclosure Short Sale or Foreclosure Sale Formula
The banks' formula to accept short sales is 180 days on market before the final REO sale by an end buyer.
In today's market this is not accurate and banks will continue to lose money if they don't change this obvious calculation error that has changed over the last year.
180 DOM gives a false number of what the bank will have into the property at the time of foreclosure sale. It insists that a buyer pay more to keep this house from going to foreclosure sale. The buyer now has the liability and will take the hit if the values keep dropping.
Talk to your loss mitigator about this number in his equation. Ask his/her "what is your value for DOM? Do you really believe that is accurate? You've seen the data I've provided you and it is not close to that." Get him/her to use a much longer number because the house will be on the market much longer than 180 days!
Deb looking out for more ways to get discounts McMillan
Stay tuned here with
The Short Sale Queen®
And Believe in Your Own Success!
deb@shortsalequeen.com
posted by Deb at 5:43 AM
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