Avm On A $400,000 Home

[Carnivore]

Paul,

Apparently that is the deminimus loop hole. Even though the heloc or 2nd mortgage is subordinate to the first, as long as transaction is below 250,000 everything is hokey dokey.

So if the first forecloses, the only way the 2nd can save its position is to purchase the house at the court house steps. No matter what anyone bids, the 2nd position can always match the bid plus add one dollar.

Sweet deal, it keeps the regulators and stock holders off your back until you can dollar cost average the loss!!

 

[DTB]

Remember they are not interested in the VALUE. They are interested in the LOAN. If an AVM, skippy or you and I get them there it's all the same to them.

 

[Edd Gillespie]

Originally posted by mike neff@Mar 3 2005, 08:18 AM
Remember they are not interested in the VALUE. They are interested in the LOAN. If an AVM, skippy or you and I get them there it's all the same to them.

Well, that has dawned upon me, but why get anything that even looks like an appraisal. I've heard it said its so they have a skirt to hide behind if they get caught, but has that ever really happened? If I understand correctly the loan value motivates some of the FDIC regulated guys, but if they aren't over that limit why do they do this. Give me facts guys what keeps this going? I'm pretty sure I know the current drift of opinion on here.

 

[Steve Wyrick]

William,

Here in California $400,000 is not even close to the median house value of $489K. They do AVM on multi-million dollar homes in some parts of the state.