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WOW. Great article! I just recieved a flyer advertisement from a realestate agent that made me think of “capitulation.” The “jist” of his advertisement was that a 10% drop in house value in tha last few months (I live in FL)… 200k is now worth 180k… But wait, shortsale your house now…. then buy a 400k house and get it at 360k and you just made 40k!!! Like shortsales are that easy.
I KNOW they are not. I just completed 2 over in Ft Myers investemnet houses. Came up with cash to avoid deficency and took a year! In fact, since I make +100k /yr, I had to also let me “primary” slip into foreclosue just to scare the other bank in accepting the other 2 shortsales.
But, now I am in a prediciment. I am 3 months into forecloure on my primary that I have a 280k loan on and just got appraised for 195k (albeit LOW - by a friend). Previously, in my mind, once the other 2 sold, i would buy my main property out of foreclosure and get a loan mod to boot. Alas, the bank is not willing to nodify, been through 3 attempts with different angles and expense ratios. I am really tempted to shortsale this one (banks recomendation), take the 100k I have buried as a down payment and buy a nicer, bigger house - foreclosure or bank approved short sale in a year or so… What do you think? Time to “go broke”???
As a last ditch effort next week, I am throwing the bank 20k (prepaying 6 months included) to modify my loan to 4% and reduce principle by 50k.
What do you think?
GREAT news letter by the way! When I am out of this mess and can touch some of my buried money, definitely will start investing in the things you mention.
Thank you!