Why would a bank ever let a property go to foreclosure when they could settle the issue and seemingly lose less money during the short sale process? What I experienced is that a bank can make more money at the public trough by letting the Federal Deposit Insurance Corporation give it a windfall profit. The Bank only gets the profit at taxpayer expense when it actually forecloses. So, home mortgages originated By IndyMac Bank are being forced into foreclosure by the federal government.
Of course, there are other possible answers and different circumstances. But, this experience really opened my eyes to how the federal bank bailout program is wasting tons of federal money and holding back short sales while it forces some folks into foreclosure.
Let's start from the beginning. I've been working with a delightful couple moving here from New York State. We had been looking at homes in the Castle Pines area for some time. In July, I found them a great bargain on a home for sale. (MORE)