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Benevolent Banks

By
Services for Real Estate Pros with The Real Estate Investment Institute 1retiredsage

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! 

Posted by

Bill

William J Archambault Jr

The Real Estate Investment Institute

wja@reii.org      Cell 832-259-7078,      Houston 832-582-8415,       Las vegas 702-516-1569

     http://www.reii.org  Back Cover One House At A Time http:www//reii.orghttp://www.flippingforfunandprofit.info/ http://www.billarchambault.com   

From my past: GRI 1975, FLI 1974, Catalyst from a client 1974 an agent that makes things happen, REII, The Real Estate Investment Institute 1995.

http://www.reii.org

©William J Archambault Jr   ©The Real Estate Investment Institute   ©REII

Comments(7)

William J. Archambault, Jr.
The Real Estate Investment Institute - Houston, TX

Tagrid,

It's just more of the same!

Where do people get the idea their entitled to other peoples money?

Thanks for the link!

Bill

May 10, 2011 10:56 AM
George Souto
George Souto NMLS #65149 FHA, CHFA, VA Mortgages - Middletown, CT
Your Connecticut Mortgage Expert

Bill, excellent blog as always.  Unfortunately it is just not the defaulting homeowner that feels that he/she is entitled and behaves like the bank held a gun up against their head to sign the loan paper.  But it also seems to be the prevailing attitude of many of the Realtors here on ActiveRain. 

I would bet that if we were to look at all the properties that those Realtors sold, they probably sold many of those properties that they call over priced right now.  But some how in their eyes the bank is at fault for lending the money on those overpriced homes, but they do not consider themselves as doing anything wrong in selling the overpriced homes.  Kind of funny how they rationalize through that  

The truth of the matter is that owning a home is not an entitlement, and buying an overpriced home or taking on a payment that you can't afford, is the responsibility of the one who agreed to purchase it.  It was their decision and no one else's.

May 10, 2011 02:21 PM
William J. Archambault, Jr.
The Real Estate Investment Institute - Houston, TX

Thanks George!

Sadly I agree. So many of our friends and acquaintances feel that way. Their being led by a well intentioned charismatic guru who reminds me of a similar man. My fear is they could meet the same fate, death by arrogance.

I drove through his fort twice a day five days a week while going to college. I had an Aunt and Uncle who lived in a village 200 north east of there in a village honoring him. The man...

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

George Armstrong Custer.

God protect us well intentioned haters.

Bill

May 10, 2011 02:56 PM
Jon Zolsky, Daytona Beach, FL
Daytona Condo Realty, 386-405-4408 - Daytona Beach, FL
Buy Daytona condos for heavenly good prices

Bill,

"No one was ever forced to buy a home.". Interestingly, if you read blogs on AR, you would get a different opinion. It was all banks, that are the bad guys. As if people were not buying those homes with the help of agents, who so often if not always rosied the picture.

And so many agents do consider short sale an entitlement and yell at banks that they should do this and they should do that. And all of that short of full payoff amount according to the agreement, which we are supposed to follow

May 10, 2011 04:00 PM
William J. Archambault, Jr.
The Real Estate Investment Institute - Houston, TX

Jon,

Very sad, but very true!

I have allot of people that I care about that are using preverted logic.

Bill

 

May 10, 2011 04:34 PM
Jon Zolsky, Daytona Beach, FL
Daytona Condo Realty, 386-405-4408 - Daytona Beach, FL
Buy Daytona condos for heavenly good prices

Isn't it like the law of convenience? What is convenient this moment, that's how it should be treated. When taking free money, investing and making profit, and it works, fine. Nobody rushed back to the banks and kicke back some of the profit.

"They got what I borrowed, so that's it. That was the agreement"

Now the story cahnged. Money taken, invested, no profit, so they start crying fool. Now the agreement is neglected, someone has to do something for "suffering" people...

If not the law of conveninece, then the logic of convenience. Fynny, we do it, handling short sales, but agents get righteous doing that. Demanding, offended, pissed off by the very banks that financed the purchases that should not be even attempted by buyers, but who was talked into it by pushy agents under the pretext that the market would keep going up and their values would keep increasing...

Banks did not tell it to buyers, agents did

May 10, 2011 07:31 PM
William J. Archambault, Jr.
The Real Estate Investment Institute - Houston, TX

Jon,

I responded at:  Law Of Convenience I Think Not

Bill

May 11, 2011 07:22 AM