WHAT IF there was a simple fix to the short sale fiasco? What am I missing?

Great common sense answers. Saw your feature on Think Big, Work Small too - congrats!

Amy,

Great thoughts! I plan to use your bullet points for a discussion at our office meeting today... You have nailed it on this one!

Amy,

I am going to re-blog this.  What if the banks cared?  What if they knew that some FTHB get frustrated with the short sale offers and stop wanting to buy all together?  What if the banks were held accountable?  Great post, thanks for saying it.

Amy,  Brilliant.  Implementation can be just as simple.  We have a forum here filled with the men and women who would be responsible for enacting such a brilliant plan.  Rather than wait for the banks to suggest they are on board, why don't we all simply follow this plan?

if we get a new short sale listing opportunity front load the effort.  Skip the conjecture, and proceed to the bank with this with this outline.

-Allan

Great idea,

However it'll never work since you're using common sense. Something that the government and big business lost eons ago.

Sunil

What a great post Amy! Congrats on being in front of thousands "ThinkBigWorkSmall" program! :)

Amy I love the way you think!

The system is broken... you might be on to something here.

I look forward to your future posts.

What if we all demand change

Great post and comments, now back to the real world as in as long as the monolithic banks are in charge and politicans(and I include NAR etc.) always put big business first we will be stuck were we are.

I was also around in the time frame Katrina spoke of, unfortunately this is a different world, no more walking into the bank and talking to the someone that could make a decision.

There are a few portfolio banks that work very similarly to this, but when the banks and investors are involved together, there's more trouble.

It seems there should be an easier solution, but as Katerina and others have pointed out, getting a good valuation can be a difficulty, and then what if it's too high and still doesn't sell because buyer's aren't buying overpriced houses?

Amy, What a great idea! The system of guessing what a bank will accept is quite draconian and very hard on all parties. YES...it could be this simple. If you know that lenders are in fact benefiting from short sales by the 80% loss protection they get from the FDIC on the value of the NOTE then we can feel a little less sorry for their loss....i.e., they are profiting from an otherwise very sad situation for the home owner. Have you posted this to your elected representatives?

http://www.congress.org

What a great COMMON SENSE idea! However, common sense is not found in large banks or government entities as I think it is outlawed. Having worked for Wells Fargo I can tell you this idea won't fly there.

Amy, I saw the Think Big Work Small guys spotlighted this blog on their show on February 11th.  Way to go, girl.  I commented early, now I comment often!  You are so smart! 

This is the way that the new HAMP Short Sale program is supposed to work and the way that GMAC currently does it.  Who would have thought that they would have been the ones to get short sales right?  Good post

Without question the solution has and continues to be haircuts in the form of principle reduction to find the market bottom. There is an even simpler solution and you'll find it here:  http://primevest.us/?p=38 <!--StartFragment--><!--EndFragment-->

What if a lender would read all of the suggestions from agents and actually listened?  I have a short sale listing going on the market today where the BPO has already been done.  However they will not share the suggested price from the BPO with me so I still have to list the home "blind" as to the price.  DUH?

#8 - HAMP doesn't do this, HAFA does.  The amounts have been revised also: $3k for homeowner, up to $6k for junion lienholders and $1500 to servicer.