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Burdett Short Sale approved at 248K

Got the word back from the bank on the Burdett property in Sacramento regarding the short sale.

Quick review: I bought the house a few months ago (Jan 4th, 2006) for 295 with 100% financing. So, I owe 295. At the time, the property would appraise for 315 or more. Now it’s worth 275 based on recent bank appraisal. The buyer/investor I’m working with on a short sale offered the bank 200. The negotiator at the bank said “I don’t think so!”. See the previous post: Burdett Lender is Playing Hardball for more.

After getting the initial rejection, the investor put together a net sheet, showing the bank how much they would loose if the property goes to foreclosure and becomes an REO. He tried to convince the bank that taking his 200 offer will net the bank more.

The lowest the bank would go at this point is $248,000.

The negotiator at the bank says that’s would be the opening bid at the trustee sale. So he will not take anything less. I was a bit confused by that. I though the opening bid is normally the pay-off. I guess this bank is very motivated and is willing to start the bidding at a loss. They really don’t want to take back any houses, I guess. Sign of the times or a ploy?

The investor does NOT want to buy at this price. It’s too high for his requirements. His plan B is to market the property and assign it to an end-user buyer or another investor.

I was also asked to spread the word and see if I can find a buyer. If you want it, the investor can simply assign his contract to you for an assignment fee. You can then just close on it in your name through an escrow company just like a regular purchase.

For those wondering… I will NOT be getting any cash from this deal. It’s not right for the seller to profit from the short sale when the bank is loosing a bunch of money. My goal is to just get this thing sold so I can avoid foreclosure.

My loss your gain. Any takers?

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