Do I Need High Estimates??
Doing my first short sale. Have to submit a list of repair estimates to the loss mitigation company. Who the heck do I call to get the highest estimates? I usually am calling around trying to get the lowest price...now when they quote me a price, I have to ask: "are you sure you cant get it done for more than that?" Haha.
Any advice is greatly appreciated.
Brian
Have a general contractor buddy of yours quote it high for you.
Get your quotes at the retail one time only level but be careful some of the Loss Mitigators in my area have started to call back on the contractors involved. The reason being that with the highly inflated prices of the present spike. a lot of Banks and other lending institutions think it is best to take the foreclosure all the way. Bite the bullet at the now and then deal with a perfected title at future sale. also a lot of the brokers that have established relationships with these lenders and represent them on their REO properties of course want them not to take short bids. Just take her all the way thru foreclosure.
My approach is that I am working on both sides of the fence. I do not want the bank to go all the way on a foreclosure sale as when the property goes REO it is a bit of a smear on the reputation of the lender. Also so many of the loans have been sold and all kinds of service deals have been made. Some of the packages in the secondary market have had agreements that in case of foreclosure or default the originating lender would some how or other recompense the lender who had the loan at time of foreclosure. I notice a bit of assignment of interest in mortgages and trust deeds in and around foreclosure time. I used to think this was just indications of FHA, or dear Freddy, but lately I am a little puzzled. Wish I had the time to look into this but containers do take my time.
A possible scenario is that with the situation at FHA, Freddy and even HUD getting a little auntcy maybe the lenders are closing ranks and setting up their own associations to hold future foreclosure and defaults within their own umbrellas and not look for the guarantees of the semi government market makers such as FHA and Freddy. Frankly the way HUD drags its ass on foreclosures I think any right thinking Banking Association could set up a better and more efficient system to get the properties resold and, not at all the time increasing market prices. Interesting area to set your nose in. Might lead to a profit. God knows there is something going on. Maybe more losses then reported, or costs much higher then the guarantees call for. who knows. Great area to poke into.
cheers Lucius