Mike’s Real Estate Show

As a “bubble-boy” here in the “Wine-Country” of Sonoma County, we are seeing the lower end $250-$600K riddled with “subject to short-sale” or “subject to Lender Approval” (these are the agents who know we are searching our MLS “comments” for the word “Short-Sale” and avoiding those listings!). I now have to state this is “NOT A SHORT-SALE”!!
 What fries me are the lenders, obviously swamped by the Tsunami of pre-foreclosure/foreclosure loans, who have departments NOT talking to each other. I had a transaction where the seller had 5 properties she was trying to “short” with Long Beach Savings. I had an offer for one at $510,000. The loan was for $625,000. Loss Mitigation department was working with the seller and all the while the foreclosure guys watched the clock. Foreclosure time struck, they went to the courthouse got the property back then sold it ON the court steps for $367,000!! The guys who bought it called me back and asked if we still wanted to buy it. My clients said sure and we closed Friday. Now if these boys go in front of Congress and ask for the bailout you are suggesting, I think someone should bring this up!! I remember the RTC. They used the same corrupt appraisers to do the “re-appraising” of their own MAI’s!!(made as instructed).  Did we learn our lesson then? Remember the talk about eliminating the double whammy of loosing your home and THEN having to pay for the debt relief! One of my clients is facing $160,000 in ordinary income this year due to the short sale. They might be able to get around it with a “hardship” plea.
 And you know what? We’ll do this all over again in about 6-10 years!!