A tipster forwards a RealtyTrac pre-foreclosure notice for 1200 Indiana. Fortunately the sale is pending and we’re guessing the owner isn’t feeling too stressed (especially if he’s enjoying one last soak in that hot tub).
∙ 1200 Indiana: Flip Or Folly? [SocketSite]
∙ Going Once, Going Twice… [SocketSite]
∙ Speaking Of Bachelor Pads… [SocketSite]
So what exactly does that indicate?
Does this mean that the bank is going to lose $930k?
This simply means that the current owner is delinquent on at least one loan for $930K (there could be others secured by the property). Assuming this is the only loan (or is at least senior to any other loans), and that the property closes for around $1.7M, then the bank will be just fine.
The big problem for banks (and owners) is when that “Default Amount” is greater than the “Market Value.”