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Short Sale to Stop Foreclosure Update

Quick update…

New Mexico property:

Had agent drastically lower the price from 469 to 409k in order to compete with all the inventory. Apparently we haven’t been getting offers because ALL the houses on that street are for sale and the entire Rio Rancho area is really bad right now because of all the flooding. (The rest of Albuquerque area RE market is doing quite well.) So, nobody wants to buy in Rio Rancho right now. This is bringing down all the values in that area.

After the price reduction went into effect on Sunday, three people looked at it today but after they saw the washed-out streets all around they decided not to send any offers.

However, we did just get a letter of intent late today for $380k with $10,000 cash deposit. I’m going to submit that to the bank tomorrow morning with the short sale packet and my hardship letter and see if we can stop or postpone the foreclosure that is scheduled for Wednesday. (Down to the 11th hour again!)

I did verbally accept the $250 + $1250 for my redemption rights on Sunday. The guy sent the initial $250 check and the paperwork in the mail today. I need to notarize it and send it back to him.

That’s actually the same person that submitted the 380K letter of intent. I wanted him to try to buy the property from me before foreclosure so that I don’t get another foreclosure mark on my record and pay the lenders back at least some of the money. The offer might allow me to stop foreclosure temporarily. Either way I told him I’ll sell him my redemption rights. What do I have to loose lose? (I haven’t signed the paperwork yet because I haven’t seen it yet.)

I told my agent to send me pictures of the flood damage around the house and of the damage to the driveway, as well a few good pictures of the inside of the house as well. I will be sending those with my short sale package first thing tomorrow morning to show the bank what’s going on there.

They need to understand that if they take this house back through foreclosure they will be stuck with it for a looong time.

Burdett: Got an offer for $245,000 but they want the seller to pay for a bunch of stuff. I was concerned about that but my agent explained to me that I will not have to come out of pocket for any of that. If the bank is willing to credit the buyer some of the items they asked for it will come out of bank’s proceeds. So I signed it and now we’re waiting for an answer.

Larchmont: nothing at this point. We’re still have some offers trickling in but they are all low-ball. The bank will not go below 220. I haven’t received a foreclosure auction date from the bank either. So this property is in limbo right now.

Muncy: Bank appraisal came in at 330. My realtor thinks that’s way too high. He thinks the banks don’t realize what is happening to the values in the area. However, my agent found another buyer who is interested in raising their offer to 300 (up from their original offer). The negotiator from the bank gave my realtor the feeling that they will probably accept a short sale at 300. So now my agent is trying to see if the buyer is willing to go forward at that price. We’ll know soon.

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