Tag

underwater home

“Ready, Fire, Aim” — Short Sale Version

The Role of the BPO (“Broker Price Opinion”) When someone owes $250k on a home currently worth $200k, arguably they no longer own the home . . . their bank does (or, at the very least, the bank calls the shots). So, it would seem smart to find out what the bank is willing to sell...
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Upside Down Homeowner? No, Upside Down Home

By now, most people know what an upside down home owner is:  someone who owes more on their mortgage(s) than their home is currently worth. Supposedly, Americans are (still) collectively underwater to the tune of $5 trillion. So, what’s an “upside down” house?  (my term) It’s a home where the finished square feet are disproportionately...
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Housing Market “No Man’s (er, Seller’s) Land”: Explaining the Dearth of Inventory

When Supply & Demand (Especially “Supply”) are Broken “The sale of a home actually represents two, discrete transactions.  To a Seller, it represents a lump-sum payoff; to a Buyer, it represents a series of monthly payments.” –Floyd Norris; The New York Times To explain the dearth of homes for sale nationally as well as locally...
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“Can I Donate My Underwater House to a Non-Profit (i.e., Charity)?”

That’s the question I fielded the other week from a client on behalf of their friend, who was leaving town imminently, and was (deeply) underwater on their North Minneapolis home. The short answer:  ‘no.’ The more detailed answer:  “no, for about 18 different reasons,” starting with the fact that what the underwater homeowner is essentially “donating” is a...
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“Sunk Costs” and Underwater Homes

Homes That Can’t Be Bought or Sold “Sunk Cost“:  A cost that has already been incurred and thus cannot be recovered. A sunk cost differs from other, future costs that a business may face, such as inventory costs or R&D expenses, because it has already happened. Sunk costs are independent of any event that may...
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