Benevolent Banks give shorts sale debt relief to deserving home owners, because they are entitled to it. The government gave the banks our tax dollars, our kids tax dollars, our grand kids tax dollars and most likely their grandchildren's tax dollars so home owners can get relief from over financed homes they were forced into by the bankers. You have a right to sell short on your terms at the banks expense! You're in titled to it.
The economy of the last four years is based on these fairy tails! The history of this time will read like the Grim brothers tales of a long, long time ago. The facts will be as scarey as any thing Poe wrote. The response to all this could have been written by Marks as interpreted by Stalin. I'm not sure Orwell could have wrote such a thing, but he did summerize it well when he penned "All animals are created equal some are just more equal than others."
Benevolent Banks are a misnomer! Short Selling is not an entitlement. A short sale is not a gift. A short sale is an opportunity!
Those Benevolent Banks forgive you because it's in their own best interest!
A Bank's benevolence is not altruistic it's pragmatically self serving. To the defaulting debtor it may has the effect of a gift, debt relief is a blessing to those who can no longer afford the debt, but there is no entitlement to it. With rare exception the bank didn't sell you the home. No one was ever forced to buy a home.
Those Benevolent Banks accept short settlements because in their sole opinion it is better for them than the hassle of continuing their relationship with the defaulting debtor!
Banks don't want to be benevolent only to appear so.Banks don't want taken further advantage of by the defaulter or their agent. To that end they impose their own rules before approving a settlement/loss.
To avoid being scammed further by the defaulter they insist on an arms length transaction and to keep the defaulter from ever owning or living in the subject home again. It's sad but you defaulted on your mortgage note, they have no reason to believe the defaulter.
To avoid losing more than necessary they've impose restrictions on any resale. Lately they've added restrictions to items paid outside closing, POC's! Their logic is simple anything the buyer is willing to pay to purchase the house, but doesn't go to them adds to their loss!
B of A in a poorly thought out provision has demanded the listing broker assume a fiduciary duty to them. Absurd at first glance they are simply asking to see all the offers to avoid selling to an investor or straw man who would resale to a consumer who should have been an honest seller's choice. Again simply making sure that they lose as little as possible.
Benevolence is in the eyes of the beholder. To a defaulting home owner a short sale is an opportunity! To a defaulting home owner an approved short sale is indeed benevolent gift.
To a would be short sale buyer they're hassle. They are also an incredible bargain, but the hassle and delays must be considered.
Banks may not be benevolent, but defaulters and would be short sale buyer's should be. Be thankful for the opportunity.
Tolerate the hassle they have a reason for their demands and it's their money you want! May the profits be yours!
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