Four banks were closed by regulators on March 11 and 12 last week bringing the total to 34 failed institutions this year. The Park Avenue Bank of New York, New York, The Old Southern Bank of Orlando, Florida, The Statewide Bank of Covington Louisiana and LibertyPointe Bank of New York, New York. The Park Avenue Bank, New York, New York, was closed by the New York State Banking Department. The New York State Banking Department appointed The FDIC as receiver. The Florida Office of Financial Regulation closed Old Southern Bank, Orlando, Florida. The FDIC was appointed as receiver. The FDIC entered into a purchase and assumption agreement with Centennial Bank, Conway, Arkansas, to assume all of the deposits of Old Southern Bank. The Louisiana Office of Financial Institutions closed Statewide Bank of Covington, Louisiana. The FDIC as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with Home Bank, Lafayette, Louisiana, to assume all of the deposits of Statewide Bank. On March 11th The New York State Banking Department closed LibertyPointe Bank of New York, New York. The FDIC was appointed as receiver. The FDIC entered into a purchase and assumption agreement with Valley National Bank, Wayne, New Jersey, to assume all of the deposits of LibertyPointe Bank.
What Is The Right Listing Price For A Short Sale Property?
Forget about what you learned in realtor class. If you price a short sale the same as other listings, you will be pricing it wrong. On a regular listing, you would rather err on the high side. On a short sale the opposite is true. When trying to find the right listing price for a short sale listing, the first order of business is to determine the fair market value. In determining the right listing price for a short sale you need to first concentrate on the actual property. If the property is in need of repairs, this may require contacting contractors to assess needed property repairs. Remember, all short sales are sold "As Is" so the property repair estimates are used to help determine value only. The FMV is the correct price for a short sale listing and not higher. Pricing a short sale listing higher than the FMV may haunt you later in trying to move a short sale offer to the closing table.
A lender's negotiator must make the decision whether an offer is worthy of ordering a BPO (Broker's Price Opinion.) The listing price is one item the lender's negotiator may look at in order to roughly calculate the NPV (net present value) on the short sale. If the lender negotiator's estimated NPV is too low which in this example is based on the listing price, the negotiator likely will decline the short sale offer and not order a BPO. Remember, BPOs are not free. A negotiator may elect not to waste a BPO on what looks like a lowball offer. If the negotiator elects not to order a BPO and denies a short sale due offer due to a low NPV, this may have been avoided if the listing price was priced correctly. Bottom line, do not overprice a short sale listing.
Close more short sales.
If you are listing agent or a broker who wants to speed up the short sale process, the best way to do this is to have the short sale experts negotiate your short sale listings. Bill Burress at Timothy J Cotter, PA can help you get your short sale listings to the closing table. Timothy J Cotter, PA offers a short sale negotiating process that is no cost to realtors and realtors keep their commissions.
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