Foreclosing banks do not return your equity!
I do not have to travel far to find interesting stories from the Sacramento Real Estate market–which I write about here, so you will have another tool to discern the truth from water cooler gossip. And knowledge is power. And you need a little muscle these days!
I spoke with a seller about two months ago, about doing a short sale on their red hot Elk Grove listing potential. Their general attitude, sadly, was “nah….we’re just going to let the bank have it”. I tried to discourage them of course, I’ve never seen that as a good plan-hurts your credit big time, for starters.
Today, I thought I’d follow up, check one more time. But, sadly, too late. Bank foreclosed, house was sold at the Trustee Sale on the courthouse steps to a third party, a new owner, for $20,000 more than was owed on the house!! The money goes back to the lien holder.
Or to put it another way…..the seller (the original owner who was foreclosed on) had $20,000 in equity.
Or, to put it another way….the seller by being obstinate and “letting the bank have it”, just gave the bank $20,000 of his money, that he would have gotten from the sale of the home. In his pocket. In his bank account. Pay down other debt. Go to Hawaii. Gone. Gone to the foreclosing bank.
Don’t let your home foreclose. Sacramento Real Estate is the number 2 market in the nation for recovering values. We have gone from 65% Short Sales to only 10%.
What’s your Sacramento home value (or anywhere in the area Elk Grove, Roseville, Rocklin, Folsom, etc)? Let me know if you want a free property valuation.