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Short Sale and Loan Modification Nightmares – Week Six

By Todd Clark - Retired

Real Estate Agent with eXp Realty LLC 200311024

February 09, 2009 04:37 AM

There are not as many stories as I had hoped this week, but we still have a few, including a story of the government trying to kick home owners when they are down. Another one where I personally had to call out the big guns to get a bank to take some action on one of my short sales, and then one where the agents didn't know if they should laugh or cry. I say cry because it really was a case where everyone lost.

Janine Hook from Keller Williams in Vancouver, reported how the State of Washington was planning to tax people on the difference between how much they owed on their homes and how much it actually sold for in a short sale as income. Check out this great article, but be prepared to be upset at the government for taking advantage of people. Taxing of Short Sale 'Phantom Income'- Confusing, Unfair and a Misinterpretation

Laugh? Cry? Jerry Rolling, another Keller Williams agent from the same office as Janine, had another story of WAMU with one hand not knowing what the other hand was doing and the problems that it is creating on the local market. Check out his short, but to the point article and I think you will see this has to stop. Laugh? Cry?

The last post this week is from me and a loan modification that a bank refused to do for a client of mine. She didn't make enough money to pay back the loan, but they were willing to let her keep paying the higher amount until she couldn't anymore and then would gladly foreclose on her. The article entitled "Ok banks, that makes no sense at all!" really shows how banks really are not using any logic with their clients and this is the real reason I think they are going bankrupt.

Now, if we can have everyone tell their friends and colleagues about our group so we can have more stories to send our government officials, maybe we can get them to realize that since throwing money at the problem hasn't worked, maybe a little oversight will. If you aren't a member of our group, I suggest you check it out and join today. Together we can make a difference. Short Sale and Loan Modification Nightmares

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Liz Loadholt

Liz Loadholt- AgentOwned Realty- Covering SC - Mount Pleasant, SC

Realtor--Broker-in-charge - Trainer--Relocation Director Covering SC

Todd, Thanks for the help this morning. I just joined your group on Short sales and invited one of my agents to join also. Very informative blog. Thanks.

Momma Liz

Liz Loadholt

Feb 09, 2009 05:47 AM

Chris Oliver

Century 21, Preferred Properties - Reynolds Plantation, GA

And what is with countrywide/boa/va foreclosures. We now have to prequal any offers with countrywide and the va form we have to fill out states a 95% 5 yr. loan at 6.5%. What's the matter? Are they afraid there won't be anymore foreclosures in 5 years and they want to make sure they have job security. Makes no sense at all.

Feb 09, 2009 06:11 AM

Fred Chamberlin

Guild Mortgage Co - Oak Harbor WA - Oak Harbor, WA

Oak Harbor/Whidbeynulls, #1 Experienced FHA Mortgage Consultant

I really appreciate you keeping this program going. I know there are more stories out there, and we need to keep hammering our representatives about it. Keep up the great work Todd.

Feb 09, 2009 09:50 AM

Tom Braatz Waukesha County Real Estate 262-377-1459

Coldwell Banker - Oconomowoc, WI

Waukesha County Realtor Real Estate agent. SOLD!

Todd

I am looking for an accountabilty coach, and I am tough. 10-15 minutes in the morning, and fiftenn in the afternoon to make sure we hit our goals for the day. I like yoyu, we each do a couple hundred transactions per year, and it might be a great mix.

What do you say?

Tom

Feb 09, 2009 04:38 PM

Chip Jefferson

Gibbs Realty and Auction Company - Columbia, SC

Hopefully there will be some government intervention into these brainless lenders. Its crazy. So many people have lost jobs. Then they lose it all.

Feb 09, 2009 09:33 PM

Daniel J. Brudnok, REALTOR

Berkshire Hathaway Home Services Fox & Roach, REALTORS - Exton - PA License #RS-225179-L / Delaware License #RS-0025038 - Downingtown, PA

SRES, e-PRO,ABR,GREEN,CSP

Todd,

They certainly do nothing to move the process along....and seem to waste time and money finding ways to prolong the agony.

Feb 09, 2009 11:58 PM

Anonymous

Karen Lord

I am on disability and went ahead and and asked for a home mortgage loan modification from my lender WAMu (Washington Mutual) which is now owned by J.P. Morgan (Chase Bank). iI told them that I had a hardship and they didn't care. They also used my bankcruptcy as an excuse that happened over 11 years ago, due to a nasty divorce. Meantime, I am going to hire a lawyer, as I am EXTEMELY livid!! This is from the Consumers Union (action@consumers.org)

Nearly every 13 seconds, another home goes into foreclosure. While billions of our taxpayer dollars have gone to bail out the giant financial institutions that helped get us into this mortgage mess, little has been done to help homeowners stay in their homes.

You can help change that right now. I just sent an email to Congress supporting measures to allow homeowners facing bankruptcy to restructure their mortgages, and to ensure the next round of TARP money really helps Americans avoid foreclosure. Would you take a moment to do the same by clicking the link below?

Home mortgages are the only debt that can't be modified in bankruptcy court forcing into foreclosure hundreds of thousands of struggling homeowners who want to keep their houses. Currently, the courts can modify all sorts of loans for owners of big corporations, commercial real estate, even those with vacation properties but they can't do the same for families on the verge of losing their only home.

The proposed bankruptcy legislation won't cost taxpayers a cent, and it won't excuse families from paying their mortgage. It simply gives bankruptcy judges the authority to modify loans when homeowners have exhausted other options to avoid foreclosure.

So far, the largely voluntary efforts to get banks to restructure mortgages aren't working, and our neighborhoods and home values are suffering due to foreclosures. Now, some of those financial institutions who got us into the mortgage mess are lobbying against this helpful change!

Send an email to Congress to pass this simple fix to help homeowners, and tell them to ensure the TARP bailout money includes a plan to help Americans avoid foreclosure.

Wake up, Americans!!

Take action!! Write your Senators and Representives of your state!

Thank you!

Feb 10, 2009 03:12 AM

Katerina Gasset

The Gasset Group & Get It Done For Me Virtual Services - Provo, UT

Amplify Your Real Estate & Life Dreams!

Todd- We had a memo sent out by an EMPLOYEE of the Florida State dept of Revenue that said title companies had to collect the difference on shorts! After speaking with our state senators and our board getting involved the governor clarified that this is not the case. You need to go to your Senators, of course, in Oregon they favor taxation:) Good luck!

Feb 10, 2009 09:12 AM

Patricia Kennedy

RLAH@properties - Washington, DC

Home in the Capital

Todd, it's amazing that after a year of this stuff that so many of the lenders don't have it together. Grrrr!

Feb 10, 2009 11:52 AM

Patty Luther

RE/MAX Rock-n-Roll Realty - Lewiston, ID

Lewiston ID Real Estate, Idaho-Washington

How true Patricia that many of the asset managers/lenders don't know what they are doing...they are learning...but some of them frustrate me... PattyLuther asking the same things over and over...requesting you do something one way and then asking you to do the same thing another way...Yikes!

Feb 10, 2009 06:30 PM

Todd Clark - Retired

eXp Realty LLC - Tigard, OR

Principle Broker Oregon

Liz - Great and I'm glad I could help!

Chris - No, I'm thinking Countrywide has no idea what they are doing. Because I think they are one of the worst offenders of not getting it.

Fred - If you see someone that writes a post about a short sale or a loan modification, tell them to join the group, we could use the support as well do the American people.

Tom - I'll call you in the next couple days. Your morning is about 3 hours before mine.

Laura - I don't like the government getting involved in to our everyday lives, but you are right the banks certainly aren't figuring it out for themselves.

Feb 18, 2009 02:05 PM

Todd Clark - Retired

eXp Realty LLC - Tigard, OR

Principle Broker Oregon

Dan - I think they are paid by the hour, I would love to see them get paid by the file, approve or deny, they would get paid the same. That way they wouldn't be attempted to approve or deny something based on pay. Right now it is "Oh, here comes the boss, look busy"

Karen - Thank you for your contribution, it is wonderful to hear the stories from the public's point of view and maybe that will weigh in on the decisions in Washington.

Katerina - Don't remind me what they favor. TAX, TAX, TAX until we have one large park and no one to pay for it.

Patricia - A year, I've been doing these for two and it certainly has gotten worse instead of better.

Patty - OH, I wrote a post about that myself a couple weeks ago and don't get me started again. I love your graphic, it says everything!

Feb 20, 2009 09:44 AM