Not only does the distressed mortgage holder need to realize the importance of pursuing a short sale, they are responsible for finding a buyer. This almost always means listing the property with a real estate agent. The problem is, real estate agents don’t have experience in negotiating the mortgage deficiency.
There must be something more than coincidence that the short sale delay stories parallel the mortgage modification stories on the internet. Ya think? Does anyone else suspect a lack of good faith and effort on the part of banks in disposing of distressed properties in either the short sale or mortgage modification process? Again, we know the servicers make more money on foreclosures than short sales or mortgage modifications. Stories like this one should point the accusatory finger with even more strength.
Those of us in the mortgage business wage an on-going battle to convincingly show distressed mortgage holders that short sale or mortgage modification is better for them than a foreclosure. Here, it is stated yet again. My job for my customers is to prove the same facts to the lenders.
It is most definitely important to the community that the short sale and mortgage modification campaigns continue.
One agent estimated that a short sale will provide 20 to 30 percent higher price for the bank than a foreclosure. Why the holders of these troubled assets don’t pressure the loan servicers has been a mystery. The mortgage investor is missing the REST Report as part of the application file. The REST Report calculates the best resolution for the investor and distressed homeowner, not the servicer. Once Net Present Value is calculated, the investor and homeowner can work together for the best outcome; either mortgage modification or short sale.
ANYTHING BUT FORECLOSURE!
Although technically the seller may be ultimately responsible for the deficiency in a short sale price, an experienced investor will offer a cash price for quick sale AND negotiate the loan deficiency away, depending on the seller hardship. (The deficiency is the difference between the selling price and the mortgage loan balance at purchase closing.) The REST Report does all of the financial calculations to justify the dismissal of the mortgage deficiency – using the bank’s own software.
The U. S. Treasury is well aware of the lender’s reluctance and cooperation, but has been of little help in encouraging lender’s cooperation. Treasury just last night on PBS admitted that they have no influence on resolution of distressed mortgages. Even more, this puts pressure on the distressed mortgage holder to be proactive in selling their property. In the US, you don’t get prosecuted for stupidity. A servicer does get prosecuted if they fail to negotiate in good faith, however. That’s what the REST Report ensures.
Nobody in the mortgage rescue industry hold any illusions about the lender’s complying with the supposed 10-day requirement for reply to a HAFA short sale offer (Home Affordable Foreclosure Assistance). They will squeal just like they squealed about mortgage modification applications. HAFA has proven itself to benefit the mortgage servicers – not the investor or homeowner.
Again, this lender gets away with telling the distressed homeowner to miss payments in order to be considered for a short sale. That is blatant misinformation. The homeowner does not need to miss payments to demonstrate hardship.
The distressed homeowner in this story made several mistakes. She used her savings to make mortgage payments. She paid on the mortgage principal. The time for conscience and good faith on the part of distressed homeowners has long since passed. It’s just business. If your lender wants your home at a bargain price (foreclosure), don’t help them. Look out for numero uno. Look in the mirror. Guilt should play no part. It’s just money. That’s how your bank sees it.
The reader should ask themselves, “Why did every bank scramble to buy themselves out of the Troubled Asset Recovery Program?”
This quote says so much more than just the words: “I think there’s a tension between the expectation that institutions operate in a safe and sound manner and the expectation that they will somehow do good for the community because they received financial bailout money.”
The short, efficient answer to all of this is to contract with an experienced investor and hardship negotiator like the ones I represent. We typically get short sales closed in 60 days.
This YouTube video says it all. Go here: How to Get A Beneficial Mortgage Modification Now
The internet being what it is, certain search terms need to be empahasized so that you can find the best information. Obviously this page concerns short sale, short sale rules, and foreclosure alternatives. But other concerns such as try title, quiet title, and clear title may apply. The REST Report is best classified as loan modification software or do it yourself loan modification. But if your reduced income is too low, short sale versus foreclosure is the goal. The REST Report claim to fame is that you use it to
calculate Net Present Value exactly the way the banks do, using their software. It is the answer for a real estate title search to decide if your mortgage servicer has the right to foreclose on you at all. This blog is dedicated to independant mortgage advice. If you have assignment of title issues or need to calculate net present value, you may have a cloud on your title which can block the short sale rules. This blog is a resource to evaluate short sale vs. foreclosure. There is no excuse for foreclosure other than the treachery of your mortgage servicer.
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This YouTube video explains the Broken Chain of Title, short sale, cloud on title situation
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Originally posted 2010-01-25 22:08:50. Republished by Blog Post Promoter
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Short sale homeowners responsible for finding their own buyer – http://www.mortgage-mod-monster.com/?p=450
Very well written article. It will be useful to anyone who usess it, as well as myself. Keep doing what you are doing – can’r wait to read more posts.
Investopedia explains Mortgage Short SaleA mortgage short sale is one of several options other than foreclosure that might be available to a financially distressed borrower. Borrowers with temporary financial problems should try to negotiate a forbearance agreement with their lender. For borrowers with more lasting financial problems, in addition to a mortgage short sale, a deed in lieu of foreclosure or a short refinance might be potential options in avoiding foreclosure.