Lenders and short sales

Great post and a topic I love posting about.  Don't look at those people as "loosers" because they have failed in something and just want to give up.  Right now I have three files on my desk.  One is a summons on Default but there are records that the owner reached out to the bank and the bank never responded (violation), there are records that I reached out and the bank never responded (violation), and now a summons is on my desk which the bank had no right to proceed because they failed to reach out to the homeowner!  Then there's a file on a refinance where the equity line was created under a company name that the borrower/owner never worked at (lending abuse); and she couldn't afford the loan (lending abuse again)!  the final one is one where the individual died and had a mortgage but no one was aware of the mortgage (blows me away when there is mail delivery still in the United States) and hence the bank wants to move on it.  There are all kinds of stories and yes I agree, I can get tired of some of the stories but these are the stories of wanting to provide for the family by starting a business and more then likely without a business plan, maybe should have been started with the small business administration instead of an equity but I'm sure nobody told these people about that.  

Interestingly, while you think the banks have ways to prevent abuse, what I'm hearing is they'd rather just deal wiith the situation and let the "slap your wrist" for defrauding, creating lending abuse, etc. just flies by...... you know why?  The file isn't big enough to warrant it?  So, is that why our crime is esculating in this country?

Without knowing all of the nitty gritty details of the bailout, wouldn't the bailout improve the liquidity of the banks, thus reducing their needs to do short sales to accumulate capital?  More liquidity would seem like a recipe for more foreclosures imho... perhaps someone else knows more about this and could share.

Good topic!

Thanks,

Shane Murray, Realtor, C.P.M.S.

http://www.eastvolusiarealestate.com

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