Mortgage Association's own explanation of costs of foreclosure, i.e. bargaining chips

[Samuel Ksiazkieicz]

Hey, I found this while searching online, it is the Mortgage Bankers Association very own paper on the costs of foreclosure. Check it out, and use all of these points as bargaining chips for lower offers on short sales

www.nga.org/Files/pdf/0805FORECLOSUREMORTGAGE.PDF

[Scott Hubbard]

Nice post:

When presenting a short sale offer to the lender, you should be presenting it against the expected net proceeds in an REO and Auction scenario.

The lender evaluates the deal against their expected net proceeds as an REO using the BPO.

As an investor, you should be able to calculate that number so you know the lowest price the lender is willing to accept. Since lenders will usually counter at the BPO, this is your topline number. And, somewhere in between will be your break-even.

Effectively to get a short sale done, you need to be higher than the expected net proceeds as an REO.

So knowing that number within a few percentage points is a huge advantage.