Experienced shorters w/ subprimes
Working on a short sale with Ameriquest, who is a subprime lender. I'm making an assumption that they might be willing to discount at a greater rate than most lenders due to the nature of their clients. Is this a reasonable assumption? Any ideas on how much of a discount?
Thanks for all the help this site provides to the "students"---Jim
I have never done a short sale, but my guess would be the opposite. They would be less likely to shortsale since they require so much down, they feel that will get their money back in foreclosure.
I have no idea which one is really right???
I owuld agree with Drifter. A subprimer's typical LTV is lower and affords a greater equity cushion to provide for an anticipated foreclosure. Only if the FMV is close to, equal to, or exceeded by the mortgage loan payoff would there be reason for a mortgagee to agree to a short.
Thanks for the feedback. I'll let you know what happens.
This is an unusual situation anyway. House was purchased 7 yrs ago for $44k and now it is supposedly appraised for $269K. Yes---I did see an appraisal. Makes you go hmmmmmmmmmmmm.