Join Date: Nov 2012
Location: southern California
Thanked 4 Times in 3 Posts
My wife and I are buying houses, and attended an investment meeting in Orange County a few weeks ago where two women who run a business helping with short sales had startling information:
1) Big banks are paying people $30,000 to do a short sale, even if they are not behind on payments.
2) People who short sell qualify for a new loan the very next day!
It seems that the banks still say they prefer foreclosures, but the reality is that they prefer short sales. They should, as it must be less expensive for them.
Part of this may be the crazy law in Nevada which stopped most all foreclosures, so short sales are the only alternative.
In all of this, you have crazy bureaucracies such as "fannie." We were chasing a vacant Nevada short sales for several months where they had not bothered to tell us that fannie was involved. We would not have wasted our time, and bupassed other deals, if they had disclosed that material fact. While the house has solid comps at $110,000, they insisted on $120,000, so we walked away. Maybe they will find a sucker, or maybe it will sit for many more months. Typical big government (fannie and freddie are government for all practical purposes).