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Thursday, April 1st, 2010 at 7:21 AM

Cash-For-Keys Bingo

Posted on Thursday, April 1st, 2010 at 7:21 AM in Jim TV, REOs, Thinking of Buying? | 9 Comments » | Print Print You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

Reader Comments: 9 Responses

  1. Wow, Jim, I guessed $3,000. How did BoA come up with the $5,600 amount when you thought the “cash for keys” would be $1,500?

    Susie | April 1st, 2010 at 8:17 am

  2. $5600 on top of however many months the deadbeat lived for free in the property.

    I bet in total they pulled off a $15000 scam.

    * I wonder if the deadbeats refi’d out cash?

    shadash | April 1st, 2010 at 8:36 am

  3. Jim, how will you deal with the mold issue around the hot water tank? Will you rip the whole thing out and redo the entire drywall? Or can that spot be properly cleaned without seriously damaging anything? And is the tank still in good working order?

    François Caron | April 1st, 2010 at 9:28 am

  4. BofA’s stock price has more than quadrupled since March of 2009. I don’t think they will miss the $5600.

    GameAgent | April 1st, 2010 at 11:22 am

  5. Hey Guys and Jim..
    How long have you had this property? Let’s follow this one and see how long it takes to get it sold and out of “inventory”. My point is, for those of you advocating foreclosure on everything…, how long does it really take to resolve a property via foreclosure versus a reasonable short sale process?

    DonnieB | April 1st, 2010 at 11:40 am

  6. GameAgent,

    Maybe for the employees/management who own stock, they are happy. But stock outstanding is basically pieces of the company that were sold off to other owners. The quadrupled price is what it would take for BofA to buy those pieces back. They could do new stock offerings at this high price, but then dilution occurs. A $5600 hit to the balance sheet is still probably pennies, but stock price has little to do with it. :-)

    Jeeman | April 1st, 2010 at 11:56 am

  7. If you really want to get rid of the mold, you should replace the drywall. That said, more likely than not, the mold that’s there is harmless and no big deal. That of course doesn’t mean that a tenant can’t clean your clock over it, and the presence of the mold is as much a sign of a larger problem (water where it shouldn’t be) than it’s a problem itself.

    Blissful Ignoramus | April 1st, 2010 at 8:19 pm

  8. Donnie,

    I’d guess selling an REO is much quicker than a short sale because they don’t have to go to the investors (which is one of the reasons short sales take so long to process). We’re also less likely to get all the fraud that’s so rampant with short sales.

    If the banks start efficiently processing these REOs, we can get to the bottom sooner, and begin building our way back up **without** all the fraud and the tremendous waste of taxpayers’ money.

    Price it right, and that house will sell in a week, if not a day.

    CA renter | April 2nd, 2010 at 1:08 am

  9. An REO is basically a standard sale with a bank as the owner. A short sale requires the approval of so many different parties (the “owner”, the bank for the first mortgage, the bank(s) for any and all secondary mortgage), some of which who have conflicting motivations, that a lot of times the sale simply never happens.

    Geotpf | April 2nd, 2010 at 8:30 am

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