{"id":434,"date":"2022-09-04T14:43:48","date_gmt":"2022-09-04T14:43:48","guid":{"rendered":"https:\/\/iamfacingforeclosure.com\/2022\/09\/04\/i-am-facing-foreclosure-com-larchmont-foreclosure-sold-at-199k-after-failed-short-sale-4\/"},"modified":"2022-09-04T18:42:05","modified_gmt":"2022-09-04T18:42:05","slug":"larchmont-foreclosure-sold-at-199k-after-failed-short-sale-4","status":"publish","type":"post","link":"https:\/\/iamfacingforeclosure.com\/larchmont-foreclosure-sold-at-199k-after-failed-short-sale-4\/","title":{"rendered":"Larchmont Foreclosure Sold at $199K after Failed Short Sale"},"content":{"rendered":"
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[Banks lost at least $130,000 on me.<\/strong> Talk about my consequences on the show<\/a> and comments here<\/a>.]<\/p>\n

\"Larchmont<\/a><\/p>\n

Some of you already know about this, but the Larchmont REO property was sold by the bank for $199,000 on May 11th. See the provided MLS screenshot. I lost the Larchmont property<\/a> to foreclosure on February 27th, 2007. I was at the foreclosure auction in person<\/a> and watched it go back to the bank for $216,000 because nobody bid on it. <\/p>\n

A little history on this foreclosure…<\/strong><\/p>\n

I bought this property for $330,000 on March 13th, 2006 with 100% financing. There were two loans 80% first and a 20% second. This deal was put together by another investor and was being offered through the local investment club with the cash-back already built-in. <\/p>\n

I just had to pay $7,000 non-refundable assignment fee in order to take it over, which I did. I was going to use the $50K cash-back for repairs and pay a few mortgage payments then sell it on a lease option. Too bad things didn’t quite work out that way…<\/p>\n

<\/a><\/p>\n

The $50K carrot…<\/strong><\/p>\n

I rushed into this deal because the $50K “carrot” was just too hard to pass up. I needed the money to float the other properties I was buying at that time. I was buying out of desperation without considering the exit strategy too much. <\/p>\n

The monthly payment on 330K with 100% financing was a lot more then I can rent it out for, even with a lease option. I would be $1,000 negative every month if I would rent or lease it. The purchase price seemed a little high too. I knew there was no way I could turn around and re-sell for the same price. Especially since it still needed repairs!<\/p>\n

What was I thinking???<\/em><\/p>\n

Short Sale Attempted…<\/strong><\/p>\n

At least, I did<\/em> try to salvage the situation later by starting to do some repairs (before I ran out of money and credit). Then I tried to lease option it. When that didn’t work out I tried a short sale. The nice short sale Realtor I hired fought long and hard to get the short sale done for me.<\/p>\n

We finally had a buyer at 220k but the bank wasn\u2019t willing to go down that low on a short sale<\/a> at that point. My agent eventually got the bank to accept that price but the buyer got tired of waiting and moved on!<\/p>\n

Banks Could Have Saved 70K on a Short Sale and Avoid Foreclosure!!<\/strong><\/p>\n

The bank could have sold the property on a short sale for 220K. I was even willing to sign a $50,000 promissory note<\/a> to make it happen. That was the only way they would let the short sale happen.<\/p>\n

The first loan was at $264,000. So the offer of $220K plus my $50K promissory note would have given the first lender most of their money back over time.<\/p>\n

What was the bank thinking??<\/em><\/p>\n

Consequences and debt liability…<\/strong><\/p>\n

What’s done is done. Can’t go back and change history. Now all I have it try to deal with the consequences. That’s something I’ll have to figure out. <\/p>\n