Have you noticed or experienced the difficulty in getting a loan modification done? These guys have an explanation of why it is happening.
The FEDS are reimbursing banks for their "losses" on short sales even to the point that they PROFIT on most of the sales. Of course they are using our own tax dollars to subsidize the banks. You may also want to read the article on the housing bubble and it's contribution to the sad financial state of our country. I think this is happening here in Prescott and across Yavapai County, as well.
I had a personal experience with this right here in Prescott Valley. I hired a lawyer at $3,000 to help me with the loan modification. The bank told me first that I did not make enough money to support the reduced payments.
I had several really good commission checks and reported the extra gross income from my real estate work. Then they told me I made too much and did not need the loan mod. At that point I finished my income tax forms to show that my net income is no where near my gross. The bank told me that they were "considering" the tax return and the other documents that I submitted. While this was in process, my home was put on the foreclosure list. My lawyer said it would be delayed. The next thing I heard was that my home was foreclosed the day before they told me.
I did get my $3,000 back from my lawyer, but I did lose the home. I believe this was a case of the loan modification people not communicating with the foreclosure people at the bank. Either that or it was a case of the bank getting the reimbursement as discussed in the video.
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