The new short sale program is designed pay out the lender, investor and the seller a small amount as an incentive to complete a short sale. However, the short sale incentive amount is so low, I cannot believe the government would expect the banks or the investors to participate in anything that would yield such a small payout.
The issue is with the banks
The fact is, most people do not want to short sale their property. They want to keep it and reduce their mortgage balance to current market conditions. That’s it! Nothing more, nothing less. People don’t want a reduced rate on a loan modification. They want their balanced to be reduced 100k less than what they owe. That would save hundred’s of people from leaving their properties and from stripping them before they do so.
Why not reduce the principle balance?
I can’t understand why lenders won’t reduce a borrowers mortgage balance. It will eventually foreclose and end up costing the lender thousands. The easiest way to solve this have an internal appraisal servicing company appraise a borrowers house and immediately agree to reduce their balance if the amount owed exceeds 25% of the appraised value.
3 years of a declining market and the banks still don’t get it
Foreclosure assistant programs don’t work and that’s a fact. Saxon mortgage is a great example of just how people cannot communicate with their lenders. I personally had Saxon as my lender and could not get anyone to call me back. It took me 14 months to get a loan modification done. That’s with me being on time with my payments. When they did agree to loan mod my house, they only agreed to give me an 8.5% rate fixed on 5 years! That’s crazy! What happens Mr. Bank when my home is still upside down in 5 years?
Before you judge me, read this...
I bought within my means, but I went on a stated income, stated asset loan. Those programs are no longer available which forced me to do a loan modification. My credit was fine, but my lender wouldn’t modify me because the value wasn’t there. Who’s to blame? Not me.
What your options are in a short sale or foreclosure
Off the record, I will tell you what you need to do. I won’t put it in writing but I will give you the truth on what to do. I don’t charge for this, I just do it, because I don’t want to see another person get the run around like I did a year or so ago. -Daniel Reynolds Mobile: 480-297-2008
About Daniel Reynolds
Resident of Phoenix Area for over 10 years, I know the Valley of the sun! I have over 5 years in real estate and over 4 years in mortgage financing. Rest assured, I can help you find a home. Whether you're buying or selling, I'm always on the ball and are prompt to answer questions either by phone or email. Please email or call me if you have any questions. My mobile is 480.297.2008 