Three Ways The Big Banks Could Stabilize Housing Prices And Increase Their Profits At The Same Time

Real Estate Agent with 616 Realty LLC

This is a great post about how banks could make things so much better for everyone!  I couldn't agree more with the ideas here. I do believe there are some banks that are great while others do not know what the left hand is doing!

Original content by Henry Pailles

Eastlake CA – Many Americans are concerned about the housing market. If they housing market continues to decline, then it could drag the entire economy with it. At least that’s what some economists are saying. We want to be part of the solution, not part of the problem. So, we decided to propose a solution

 Here Are 3 Ways The Big Banks Could Stabilize Housing Prices And Increase Their Profits At The Same Time. Get my Free, Step By Step Loan Modification Guide by clicking here.

#1: Approve more Loan Modifications. Every loan modification is one less home that has to be sold as a distress sale. Distress sales are dragging down home prices. In addition, many loan mods are rejected, only to see the lender lose even more money when the home sells. Here is an example.

 A homeowners offers to pay their lender an amount equal to a $300,000 mortgage. That means the homeowner would pay the same as someone borrowing $300,000 to buy a home. The lender rejects their loan mod offer and forecloses on the home. It sells for $200,000. Don’t kid yourself, this happens every single day. The loan owners lose millions as a result.

 #2: Make short sales easier. Yes, short sales do close. But, many don’t. The ones that don’t are usually sold for less money as a foreclosure. An extreme example is a home that received a $380,000 offer as a short sale.

The lender rejected the short sale. The home was foreclosed upon and sold for $230,000. The reason that lenders usually lose more money on foreclosure compared to short sales.

First, most foreclosures are usually left empty for several months. Mold, mildew, and other things make the home undesirable.

 Second, most foreclosures are taking 18 months or more. That is a lot of time that a home can sit empty. In addition, interest, attorney fees, unpaid property taxes and other costs are growing each day.

#3: Handle foreclosures better. We have seen many foreclosed homes sit empty for months and months. In one extreme example, a foreclosed home has been sitting empty for over 2 years. (The picture above is the front of that home.) In that time period local housing prices have dropped by 20-30%. Interest and property taxes have accrued over those two years.

 Here is how banks could do a better job handling foreclosures.

First, put all foreclosures on the market within a week. There are a lot of hungry, aggressive real estate agents that would love to market these properties. Put them to work getting the homes sold for top dollar as quickly as possible. The typical 2-3 month wait it not acceptable, especially with all the hard working agents available.

Second, maintain the vacant homes. The home pictured above is wide open. The doors are not locked. Anyone can walk right in and vandalize the place. I have seen profanities spray painted on the walls of vacant, bank owned homes. Think that affects the sale price?

 These are just a few ideas. The next time you hear your local banker tell you how they “care”, ask them how their bank is handling the recommendations in this blog post. To us, a banker telling us about how they supposedly “care” just rings of hypocrisy. And it will ring of hypocrisy as long as these problems continue to hurt homeowners, the housing market, and the American Economy.

Thinking about a loan modification?Our Eastlake loan modification kit will show you how to reduce your mortgage payment, keep your home, and get back on your feet. Send me an e-mail at to request a Free Copy. Or, click here to request a copy.

Thinking about a short sale? I can help you short sale your property so you can move on with your life. Send me an e-mail at I will contact you for a free consultation.

When we talk, I will explain how the process works in detail and answer any questions you may have. Or, if you prefer, you can call me at 619-517-6791 Discover how other sellers successfully completed a short sale and request a free consultation by clicking here. Thanks for reading this, Henry Pailles. Henry is a Real Estate Broker at houseinsandiego Realty. Eastlake Short Sales Realtor: Phone: 619-517-6791. Are you at risk of losing your home? ...We can help! View My homes for sale at

Henry Pailles specializes in loan modification assistance and short sales in Eastlake California. Eastlake Loan Modification Help, Eastlake Short Sales. Eastlake Short Sale Realtor. Chula Vista CA Loan Modification Help, Chula Vista CA Short Sales. Chula Vista CA Short Sale Realtor. Eastlake CA Short Sales. Eastlake Realtor. Copyright 2011 SFI Marketing Institute, LLC. All Rights Reserved.

Important Notice Henry Pailles, houseinsandiego Realty, and the Stop Foreclosure Institute are not affiliated in any way, shape, or form with the government. Our services have not been reviewed or endorse by the government or your lender. Most lenders willingly work with agents on short sales. Why? Because most short sales are beneficial to a lender. If you accept our offer to help you on a short sale, your lender may not agree to a short sale or to modify your loan. We do offer a loan modification kit. However, the likelihood of negotiating a modification is like everything else in life.

It takes work and persistence to convince your lender to modify your loan. No matter what you or we do, your lender may not approve a loan modification. We do not recommend that you stop paying your mortgage, because this will cause damage to your credit and could cause you to lose your home. Because we know avoiding foreclosure is so important to any homeowner, we recommend that you speak with the appropriate legal or tax advisor before making any decision.

 This is not intended as legal, technical, or tax advice. Please speak with a licensed professional before making any decision. Information is deemed reliable but not guaranteed as of the date of writing. You have the option to reject a short sale or loan modification from your lender if it does not meet your approval. If you decide not to go thru with the short sale, then you do not have to pay us our fee. We normally make a real estate sales commission for helping you on a short sale. The views expressed here are Pailles's personal views and do not reflect the views of houseinsandiego Realty.

This information on Three Ways The Big Banks Could Stabilize Housing Prices And Increase Their Profits At The Same Time is provided as a courtesy to our viewers to help them make informed decisions.

Comments (2)

Dave Halpern
Dave Halpern Real Estate Agent, Inc., Louisville, KY (502) 664-7827 - Louisville, KY
Louisville Short Sale Expert

Lots of common sense in Henry's post. The banks have been resisting these common sense practices for years, for reasons unknown to the common man.

Jun 16, 2011 06:43 AM
Charlene Hammontree
616 Realty LLC - Rockford, MI
Meeting the needs of Buyers and Sellers in MICH



Thanks for the comment! You said it all!

Jun 16, 2011 06:49 AM