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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: John Vosilla who wrote (74506)	3/22/2007 10:12:07 AM
From: BWAC	Read Replies (2) \| Respond to of 306849

< find it incredible that any bank rep said that> Maybe the banks know they are in too deep themselves. Maybe they don;t want to be eating these houses at 50 cents on the dollar plus upkeep in the meantime.

To: John Vosilla who wrote (74506)	3/22/2007 12:35:38 PM
From: MulhollandDrive	Read Replies (1) \| Respond to of 306849

I find it incredible that any bank rep said that.. why? the bank is on the hook for the loan balance if the borrowers go into foreclosure which would you prefer if you are the bank, a short sale where you lose 20% of your loan amount or foreclosure where you could lose considerably more? i think the more interesting aspect of this is that if banks pursue the 'short sale' route instead of foreclosure, that it could actually accelerate the inventory coming on the market there used to be a stigma attached to losing one's house to foreclosure, not so much with a 'short sale'