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Short sale or not, get with it Chase!

March 4, 2010

Short sale or not, get with it Chase!

I have not participOld buildingated in the process on either side in a short sale, but due to my involvement at ActiveRain am armed with more knowledge than others around me, I was awarded the dubious privilege of working with this listing. (Please note, the photo here does not represent the house in question, but it might be close, LOL)

My broker has asked me to co-list a home with someone in my office that needs to be a short sale NOW. The home is rough, actually rough might not even cover the condition. The highest and best use may involve a bucket loader and a big dumpster. The footprint is small, very very small. And the neighborhood won’t support any prices that will allow it to be an investor that buys it, in all honesty. The house next door flies a pirate flag, I refer to it as the house owned by the pirates of the Caribbean. It impacts an already compromised property. This is not what I would consider to be a desirable location by any stretch of the imagination!

What leaves me speechless? The lender (Chase) has told the homeowner that the house (which is already in the first stages of foreclosure) must be marketed at a price that will pay off the loan as well as commissions for three months before they will allow a short sale. Now I admit I am stepping in after the fact, the owner has done all the communications thus far with the lender, I have had no contact myself personally.

Why, when you can support with comps the fact that this house is worth SIGNIFICANTLY less than what is owed would they require we market the home for 3 months at a price that would make a streetwalker blush? It will be foreclosed on, the lender will probably have to spend more money than they will make on a cleanup, the liability is huge! (My definition of significant may involve 100,000 or more, I’m just saying…)

Any thoughts before I contact the lender myself and ask them if they are serious about this? We are spinning our wheels with this listing at the price they are demanding and will not be able to help the homeowner.

And FYI, did I struggle with the remarks in the MLS about this house! I ended up talking about a hammer, imagination, hard work and a sad house. Today I am going up to take some photos, and I have no idea what to take pictures of. I guess since I believe honesty is the best policy I will take photos that best represent the condition of the home. This should be rich.

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