Palm Beach FL - Here are four specific examples of big bank's negligence causing a loan owner to lose money.
Discover how other sellers successfully did a short sale to avoid foreclosure by clicking here.
Example #1: Not giving buyers an answer on a short sale within one week. Home buyers don't like to wait 3-6 months for an answer on a short sale. This fact causes many buyers to shy away from short sales, thereby causing short sales to sell for less.
Lenders should help the loan owners recoup as much money as possible from short sales. To do this, they make the short sale approval process as quick as possible.
They could start the property valuation process when the property is put on the market and determine a certain price they would accept.
More buyers would be willing to purchase the property because they know they wouldn't have to wait 3-6 months for an answer on the short sale.
Example #2: Turning down loan mods that amortize at a higher value than what is netted on a short sale or thru REO. Let me explain a little better. A lender negotiates a loan mod with a borrower with a new monthly payment of $1,000.
The borrower has a stable income and agrees to pay $1,000 a month for the next 30 years. $1,000 a month for 30 years, at a 6.5% interest rate will repay a $158,210 mortgage.
The servicer turns down the loan mod and forecloses. The house sells for $125,000 as an REO and the servicer nets $115,000. Did the owner of the loan lose money?
I think most people would agree yes. Obviously there are other factors involved, but I think on an actuarial basis they will do better with the loan mod.
Example #3: Not following up on foreclosures properly. I have seen countless examples of servicers hiring an attorney to foreclose on a house. The attorney files the paperwork.
Then, the foreclosure case goes into purgatory. Nothing happen for 6 months, 12 months, 18 months, and even up to 2 years.
I have seen this happen on more than one property. And no, there are not other factors involved. In fact, on two short sales I've handled, the sellers had moved out of the house before the foreclosure was even filed.
Example #4: Not listing REO properties quickly enough. I have witnessed several examples of banks foreclosing on a house and then taking 6 months to a year to put it up for sale.
An example is a house that was foreclosed on September 9th, 2009. It wasn't listed for sale until May 2010. Say what you want, but waiting 8 months is pathetic.
If the mortgage holder had been a wealthy individual who lived in town, do you think they would have put the home on the market a little sooner?
These are the clearest examples I can think of right now. When you multiply these examples of negligence across hundreds of thousands of defaulted mortgages, you can easily see how this is costing lenders billions of dollars. Thinking about a short sale?
I can help you short sale your property and never pay the bank another penny. Send me an e-mail at vera@verahanck.com. I will contact you for a free consultation.
When we talk, I will explain how the process works in detail and answer any questions you may have. Or, if you prefer, you can call me at (561) 891-1141
Discover how other sellers successfully completed a short sale and request a free consultation by clicking here.
Thinking about a loan modification? Our Palm Beach loan modification kit has the instructions you will need to get a loan modification approved with your bank. Click here to request a copy.
Thanks for reading this, Vera Hanck.
Vera is a Real Estate Agent at One World Realty, Inc. Palm Beach Short Sales Realtor:
Phone: (561) 891-1141. vera@verahanck.com.
Together We Can Make It Happen
View My Website at http://verahanck.com.
Vera Hanck specializes in loan modification assistance and short sales in Palm Beach Florida. Palm Beach Loan Modification help, Palm Beach Short Sales. Palm Beach Short Sale realtor. Palm Beach FL Short Sales. Palm Beach Realtor.
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