Annapolis homeowners forced to apply for loan modifications

Annapolis homeowners forced to apply for loan modifications even though they were repeatedly denied loan modifications in the past.

Sounds good right?... Wrong!

These now unwilling homeowners who are being forced into the loan modification process no longer want the home, obviously can no longer afford the home, and financially are better off being free of the burden.

In many cases, the Annapolis homeowners forced to apply for loan modifications are in the middle of short sales.  There is a buyer ready to buy and a seller ready to sell but the entire transaction is put on hold, courtesy of the FHAand HUDbecause their guidelines now require that the borrower be put through a loan modification process regardless of any previously denied loan modifications.

Short sales, which involve the sale of a home for less than the amount owed are long, arduous, and filled with uncertainty which is why houses sold in short sales sell for significant discounts compared to market prices.                            

Now the short sale sellers and buyers have just been presented with even more uncertainty   and delay. 

My Experience Says To Expect The Following:

<!--[if !supportLists]-->1)      1) <!--[endif]-->Foreclosure rates are going to start climbing again and;

<!--[if !supportLists]-->2)      2) <!--[endif]-->More and more homes are going to wind up in the hands of large investment funds at deeply discounted prices instead of in the hands of homeowners at reasonable prices.

How This Can Happen:

The banks, to a large degree, stopped foreclosure proceedings on homes over the last 18 months due to Congressional scrutiny that uncovered a massive pattern of fraud which became known as the “robo-signing scandal”.   This massive fraud was perpetrated by the banks to hurry properties through foreclosure. 

Hey, did you hear of any banking executives go to jail for this?... Me neither.

Surprise!  The banks have been caught doing their best to line their own pockets instead of helping home owners, as demonstrated by the robo-signing settlement agreement.   

At this point, the banks just want to get as far away from their self-inflicted wounds as fast as they can.  The government, as ever, is happy to oblige by assisting in creating a smoke screen.

Annapolis homeowners forced to apply for loan modifications will experience additional delays in their short sales and increased foreclosures.  But the government via the FHA and HUD can pat themselves on the back while they pretend to assist homeowners and demonstrate that they are now responding to their previous lack of action.

Note that they are not actually offering realistic loan modifications:  they are simply forcing homeowners to go through the loan modification process…again.

So here is the new normal; require an application for a loan modification…

…even though the seller may be in the middle of a short sale;

…even though the homeowner may have been declined repeatedly in the past;

…even if the homeowner moved out of the house a year ago and neither wants, nor can possibly afford the cost of the home.

So once again, the homeowner Seller is going to lose out and the homeowner Buyer is going to lose out.  Meanwhile, the bank executives snatch multi-million dollar bonuses and the funds get to “steal away” homes for pennies on the dollar.  Success for the financial institutions compliments of Annapolis homeowners forced to apply for loan modifications thus increasing the likelihood of their short sales being delayed until their home is foreclosed on!