Posts

Can I Short This?

scranfil profile photo
  • Wednesday, February 11, 2004 @ 11:13 PM EST
  • 1 Comments
I have what I think is a short candidate. She bought the house in March 03 and hasn't made one payment. Believe it or not, Lasalle bank would like to foreclose. She filed Chapt. 11 back in November. The original loan was for $78K, she owes $20K in interest and penalties, and the FMV is $106K. I have two questions: Does the bankruptcy impact a short sale and will the bank accept the short deal with a FMV being what it is? Principal $78,750 Interest $13,500 Funds advanced $1,316 Legal $1,417 Escrow impound $3,445 misc. $2,000 Thoughs?
  • (1) Comments
  • Score(0)

Comments(0)

  • bginvestor
    bginvestor11th February, 2004
    0
    Reply

    I would say you might have a chance.

    Lenders discount based on the Broker's Price Opinion (BPO). With the numbers you gave, you should be able to shave off a discount. If its FHA, they can accept up to 82% of BPO (net).

    Good investing!
    Bginvestor

Please Sign In to Comment.