EUREKA! I'VE GOT IT! WHY THE MORTGAGE COMPANIES WANT THE HOME OWNER TO BE IN ARREARS.

Thomas.  I agree that there is bloodshed.  I simply wish to prevent one small stab wound, the added wound of mortgage arrears to qualify for short sale. 

The banks wounds have been treated with about $350,000,000,000 and more to come.  The American consumer is still bleeding profusely.  They are treated with negative equity and the insult of no credit for many, many years. 

I'm not talking about credit for purchasing consumer items.  You can hardly exist in our economy without reasonable credit.  Simple auto insurance is going to cost much more for consumers with low credit scores. 

Linda.  Wouldn't that be fun.  However, I would not put up with a confirmation hearing whereby the pontification of Senators would have to approve.  I'd want an appointment whereby the Senators didn't have the opportunity to pontificate.

Alice.  Many of the loans defaulting today were 80/20s.  HOWEVER, even if the buyer put down 20%, they are still in a negative situation. 

Of course, the 80/20s were invented by THE MORTAGE INDUSTRY.

Larry.  Thanks for your comments.

You wrote:  "Oddly enough, there is still a residential real estate market. Certainly not as large a market as 2 years ago, and the market prices are much reduced, but a market never the less.  There will be less Realtors selling less homes to a smaller market, but we will get through this difficult time as we have others."

I don't believe that we have a "market".  We have some sales, but the numbers are too erratic to be considered a market.  Of course the "trends" that would evident a "market" is down, but I won't consider it a real estate market until the millions of home owners who are trapped in their homes without the possibility to see and participate in a "real estate market" can do so at will. 

Dawn.  You are correct.  It is the banks that have the power.  The consumer does not and the government is on the side of the banks, not the American consumer.

The consumer simply, I believe, is doing little to nothing.  At least they're not shopping as much as the government wants them to.  That's our one small way of saying, "I don't like what you did and I'm not cooperating with your plan any longer". 

If the government wanted to fix the economy, they'd think about the consumer befor the banks.

The government failed.  The government failed massively.  The public will not forget this mess.  Every consumer who was wiped out financially and there are millions of them, will remember.  They are helpless and they know it, but they will not forget.

Tim, Tim, Tim.  That started back in Bill Clinton's days when he opened the doors to more immigration for middle east and other countries.  All an immigrant has to do to be able to buy a home is have a job and don't break the law.

Immigration from South America has fueled housing in my area for years.  The average LEGAL immigrant from South America buys their first home after about 7 years in America.  They often buy entry level homes and help that market remain viable. 

Few homes would have been built in my area over the past 5 years without the work forces from South America who are the primary rough carpenters, concrete suppliers, etc.  South American immigrants have open businesses that service the home builders across America.  The honest hard working legal immigrant will never be neglected in the United States of America. 

Judi.  Your sold ratio is probably not much different from many areas.  Homes just sit and sit and sit.  Agents do what they can do, but the market is NOT viable.

The "credit" I'm referring to that is being unnecessarily harmed by mortgage company is ALL credit, not just credit to obtain a mortgage loan.  With unnecessary late mortgage payments on their credit report, consumers are going to be paying much more for any kind of credit.

Best Spot.  Nothing is changing yet.  Perhaps as more homes go to foreclosure, banks will rethink their short sale policies.

Gail.  If she has the income to make payments, chapter 13 would help.  Often just getting rid of the consumer debt and keep the mortgage is a solution.  However, if she can't show feasibility, chapter 13 isn't going to help either. 

Maggie. 

By George, I think she's got it!!

Maggie.  That's really the bottom line isn't it.  Follow the money.

Perrin.  Why is it we say "enough is enough" only when it gets to help for the American home owner.  The government is still dolling out about a $Trillion Dollars a week of taxpayer money to the banks and now the investors. 

If a person qualifies for hardship for a short sale with arrears, they will qualify without arrears.  If the banks won't approve hardship without the owner in arrears, where is the credit relief for the home owner if they let current mortgage go to arrears, apply for hardship short sale and are rejected.  Since neither agents nor home owners are privy to bank processes in short sale matters, why is the home owner the only one losing??????

You appear to presume that only fraudulent mortgages are going to short sale.  Not so.  Every short sale I've been involved with through listing or selling has been caused by post-purchase events that led to the hardship. 

Paul.  The only thing worse than the unfortunate home owners who find themselves upside down on their mortgage and can't make the payments is the vultures swarming around them.

Faina.  There are no guidelines for short sales, although I've heard that Fannie is thinking of getting into that arena.

If a bank will not look at a hardship file until the owner is 3 months behind, they are forcing the owner to default leaving the owner with the two choices of short sale or foreclosure. 

If the bank requires arrears, they should review and approve or disapprove a property for short sale before backing the home owner into a corner. 

A home owner is a clear case for short sale whether or not they are current with their loan.  Ruining their credit isn't necessary to the short sale process.