Updated almost 10 years ago on . Most recent reply
Short Sale Negotiation with Bank
I am the listing agent for a short sale property. This is my first one. The client has two mortgages with one bank (HSBC) totaling approx 110K and a third with another totaling 18K. I've been negotiating with the bank that holds first and second position. The BPO was just done and estimated the property value at 120K, which based on the condition of the property and comps -- is way off.
Nonetheless, here is my issue. The original loan ($80,300) and second mortgage (38,700) was taken out in 2006 -- prior to the real estate crash in 2008. While online property records does not show the market value of the home back in 2006. It does show market value starting in 2010 to present which is as follow:
2010 - $41,500
2011 - $41,500
2012 - $41,500
2013 - $41,500
2014 - $125,400
2015 - $125,400
2016 - $131,600
While I realize market value and appraised value is different, is it presumptuous to think based on the trend in market value that the property most likely worth less than the loan amount (119K) given back in 2006? Is it considered predatory for a lender to finance a property for more than the appraised value? Lastly, is there a way I can research the appraised value of a property in 2006?