What we all know and it's taken the banks some time to figure out is that they actually lose more money if a home goes into foreclosure. The banks are now assigning homes in default to foreclosure agents to be listed as a short sales.
These agents will also have an opportunity to discuss the possibilities of a home owner keeping their home. If the people are willing and have the ability to pay a mortgage they can be fast tracked to the bank and in some cases loan modifications can be done.
This is pretty general and there are a lot of factors that would come into play but it certainly makes sense for the banks to work with Realtors when the home is being sold as a short sale. The banks can lose up to 60% of the value when a home is sold as a foreclosure.
I asked the question today on our Radio Talk Show KCNR1460.com, If a home owner wants to keep their home and had the ability to pay but are going to walk away from high interest rates from an adjustable mortgage and a loss of more than half of the value, why wouldn't the banks want to renegotiate those loans??? It makes no sense to me for a bank not to create a path of good communication first!
The banks have a bad reputation, plenty of horror stories out there where the banks refused to answer phone calls and negotiate with home owners. It seems to be the Banks would want to be seen in a good light, people will put their money into a bank that is seen as a bank willing to help folks with their problems!
The time has come for change, we need to keep people in their homes if we can or at least help them with a better solution than foreclosure.
Cheers!
The Largent Team
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