I was asked the following question: If I were in charge of a bank would I approve Short Sales and take the loss or would I leave the non -performing loan on my books, therefore it would not SHOW as a loss at this time.......
So WHAT WOULD YOU DO??
I'm not in charge of a bank - however, I do know that this isn't going to go away without cooperation from the banks. They don't approve a loss on a short sale, they don't modify the loan, they wait and take 40% less in a foreclosures.
Most of the loan mods I've seen are only going to prolong the inevitable.
Yes we, the American People got ourselves into this mess.... however the banks/lenders were an equal party to the problem.
The Federal Government DID not help anything by giving TART money to the banks that temporarily helped the BANKS.
What would have happened if every home owner had been given a check that brought their mortgage to current value, that check was ONLY redeemable to the Holder of their loan. Would that not have reduced the principal, given Homeowners a move up option and more money in thier pockets, and still infused the banks with money via the US Government?
I only know in my area there are going to be more "walk away- Option Foresclosures" as homeowners make the FINANCIAL decision to no longer keep thier loan.
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