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SHORT SALES AND FORECLOSURES - GOOD FOR REALTORS AND LENDERS. BAD FOR CONSUMERS AND THE ECONOMY!!!
Wouldn't it be beneficial for banks to reduce the principal amounts owed on their mortgages rather than allowing for a short sale or foreclosure? What if banks reduced the pricipal owed on their mortgages to the current market value or 90% of the market value? Wouldn't that make just as much sense if not more sense than having their home go through the long process of a distressed sale where no one makes the mortgage payment for six months to two years and the house is abandoned and damaged as a result? If the banks and our govt. wanted the U.S. economy to get back on track, they would be more focused on principal reductions and here are some reasons why.
LENDERS and REALTORS are vigorously processing short sales and foreclosure across the country and have been for about 4 years now.
Richard Zaretsky relates a meeting he attended with Bank of America representatives in a "Short Sale Summit". In reading Richard's account of the meeting(s), a statement that got my attention spoke volumes.
"There was zero mention of principal reduction programs."
CAN'T LENDERS ADD?? The fact that the banks are so adamantly opposed to principal reduction programs leads one to wonder, WHAT IS ... more
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