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[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] Re: SALE PROPERTIES GOING BACK TO BENE'S??? Posted by The Short Sale Realtor on September 22, 2006 at 7:01 PM In Reply to: Re: SALE PROPERTIES GOING BACK TO BENE'S??? posted by Jerry - Ca. on September 22, 2006 at 2:44 PM You're absolutely 100% correct that now is the time and also the forseeable future to do Junior Bene. buyouts!!! Actually, I didn't say now was the time, I just said that if there was so much equity being left on the table after the 2nd was wiped out - there would be more people doing Junior Bene buyouts. For all I know there are more people doing these. My understanding is that its a Strong Sellers market that this strategy works best in - not the other end of the spectrum. An institutional lender made the loans based on 100% of value ... (most were lent) in 2005! While I grant you property values have dropped here in San Diego in the last year ... the value drop in nowhere near that amount. The biggest factor is not the value drop from last years purchase price to this years fair market value' - although that is significant. The factor that we don't see in the statistics is the over-inflated refinance appraisals. Trying to reach a number, overlooking flaws, finding the highest comps in the neighborhood and assuming appreciation - many of these appraisals were 110-120% over valued. This is just another factor in "why" so many borrowers are finding themselves upside down and in trouble. And why in my experience at least - so many first and second loans are taking a beating. Follow Ups: Post a Followup: Name : E-Mail : Subject : Comments: : You're absolutely 100% correct that now is the time and also the forseeable future to do : Junior Bene. buyouts!!! : Actually, I didn't say now was the time, I just said that if there was so much equity being left on the table after the 2nd was wiped out - there would be more people doing Junior Bene buyouts. For all I know there are more people doing these. My understanding is that its a Strong Sellers market that this strategy works best in - not the other end of the spectrum. : An institutional lender made the loans based on 100% of value ... (most were lent) in 2005! While I grant you property : values have dropped here in San Diego in the last year ... the value drop in nowhere near that : amount. : The biggest factor is not the value drop from last years purchase price to this years fair market value' - although that is significant. The factor that we don't see in the statistics is the over-inflated refinance appraisals. Trying to reach a number, overlooking flaws, finding the highest comps in the neighborhood and assuming appreciation - many of these appraisals were 110-120% over valued. This is just another factor in "why" so many borrowers are finding themselves upside down and in trouble. And why in my experience at least - so many first and second loans are taking a beating. Optional Link URL: Link Title: Optional Image URL: [ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] WWWAdmin 2.0a © 1997 Matt Wright and DBasics Software Company, All Rights Reserved

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