Bellevue WA – Here are two specific examples of big bank’s negligence causing a loan owner to lose money.
Click here to discover how other sellers successfully did a short sale and avoided foreclosure.
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? Click HERE to continue reading.
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