• Bonnie Erickson, REALTORĀ® in the Minneapolis and Saint Paul area of Minnesota can be contacted by phone at 612-419-1829 or by e-mail


  • One of 10 Top Women Real Estate Bloggers in 2006
  • The Magnificent 7 Consumer Real Estate And Mortgage Articles of 2006
  • My "Houses and More" Blog

« Senchi Ferry Library | Main | Delayed Closing »

June 12, 2008


Bonnie Erickson

LOL! I'm picturing the magic helicopter bursting at the seams with green backs!

I don't know how many times I've been told of a lender taking much less after foreclosure than they could have gotten during the short sale time line. That, too, boggles a rational person's mind!

Thomas Johnson

The lenders are simply stalling the inevitable. If they can kepp the house just one more quarter as non-performing, maybe Ben Bernanke will fly over with a magic helicopter and toss enough capital out to keep the CEO in his job for another quarter. 3 months pay for those guys is millions. They know their time as chief executive is limited. The board will have to fire them, eventually.

If the bank takes the house in foreclosure, the asset impairs their capital and prevents additional lending. So, they stall. And, if the house has 2 liens on it like and 80-20 or 1st lien w/ HELOC, forget about getting 2 lenders on the phone. I had my B of A assigned workout person's phone extension changed into a fax line over night. If the buyer really wants the house, sell the house when the bank owns it, just don't give them a dime more than what they would have paid as a short sale.

I think the same appraisers that over valued the house the last time are getting the foreclosure work and they are afraid of recourse from the lenders. It will take a while for foreclosure prices to hit reality pricing.

The comments to this entry are closed.