How many people try to short-sell their house, before getting foreclosed?
Those on the default list get bombarded with save-your-credit and extend-your-free-rent offers from realtors – plus kickbacks too. To resist, a defaulter must be really committed to NOT short-selling.
Of the 41 SFRs that were foreclosed in North SD County Coastal since June 1st:
Tried short-selling: 14 (34%)
No attempt to short-sell: 27 (66%)
I guess there could be a few who thought that their loan modification still had a chance of succeeding, but the bank foreclosed on them prematurely. But the vast majority of the 27 who didn’t try to short-sell must have been determined to let that house go.
On a side note – having just 41 foreclosed in almost two months, in an area that closed 410 detached sales during the same period, is discouraging news for buyers waiting for additional REO inventory.
Bank of America Corp. (BAC), faced with a glut of foreclosed and abandoned houses it can’t sell, has a new tool to get rid of the most decrepit ones: a bulldozer.
The biggest U.S. mortgage servicer will donate 100 foreclosed houses in the Cleveland area and in some cases contribute to their demolition in partnership with a local agency that manages blighted property. The bank has similar plans in Detroit and Chicago, with more cities to come, and Wells Fargo & Co. (WFC), Citigroup Inc. (C), JPMorgan Chase & Co. (JPM) and Fannie Mae are conducting or considering their own programs.
http://finance.yahoo.com/news/BofA-Donates-Then-Demolishes-bloomberg-946456059.html?x=0
This reminds me of this weird accounting policy we had at the hotel I worked at during college. Whenever there was a banquet, any food that wasn’t consumed by the customers had to be thrown away. Under no circumstances was the food to ever be consumed by any employee. The reason for the policy was because of accounting rules (i.e the tossed food was booked as a loss and used as a writedown for the year).
Bulldozing homes when there are so many people in need of housing? But yes, you have to bulldoze those homes for all kinds of liability reasons, tax reasons, etc.
How perverse is that?
I wonder how long those who didn’t short sell were allowed to live rent free?
FAIR MARKET VALUE!
Donating a house may create an income-tax deduction, said Robert Willens, an independent accounting analyst based in New York. A bank might deduct as much as the fair market value if a home wasn’t acquired with the explicit intent of knocking it down, he said.
When I am reincarnated, I want to be a bank.
What exactly is “explicit intent”? Sounds a lot greater then “more probable than not”.
I would wager that there will be very few if any BoA bulldozed homes in SoCal. Even in the worst parts of the ie or Palmdale etc…
To be honest, If I lived in the mid west I would walk out of there if I had to.
If one has seen pictures of the homes likely involved, which have in all probability been stripped of electrical and plumbing, they are nearly trash anyway and without significant expenditures would not qualify for a certificate of occupancy.(May also have had a fire as well). Note that this is in the area where some homes go for less than 10k. Urban homesteading appears not to work so this is the next step. Note that many are likely in areas that were designed for streetcars not autos. I recall one street in Ft. Wayne Indiana, laid out in the 1910s that if you park cars on each side is barely wide enough to get thru.
The city in Flint MI is also knocking down homes to reduce the need for city services.
“Of the 41 SFRs that were foreclosed in North SD County Coastal since June 1st:
Tried short-selling: 14 (34%)
No attempt to short-sell: 27 (66%)
This about is the same number as on my street here in Vegas.