They believe that lenders are reluctant to speed up short sales or loan mods because they want to hold off the day of "reckoning". Why is that?
Letâ€™s say that Joe owes $300,000 on his mortgage. The house appraised for $300,000 when he bought it.
However, the market value has dropped to $220,000. Joe gets behind on payments. Unless Joe has an extra $80,000 lying around, then his bank just lost $80,000.
You know it, I know it, the bank CEO knows it, and even Joe knows this. However, the bankâ€™s investors donâ€™t know it. This could be the reason why!
The $80,000 loss hasnâ€™t been factored into earnings at this point in time. Yet, if the bank can drag out the short sale and loan mod process, then they can delay putting the losses onto their books. They are playing some kind of financial game!
Now, Iâ€™m sure you are saying, â€œBut there are SEC regulations that forbid this from happening. Letâ€™s look at a real life example of this happening.
Germany and France are having a hard time agreeing to bailout Greece. Now, Iâ€™m sure that they have rules similar to the SEC in America.
Sarkozy and Merkel both know that if they donâ€™t bail them out, then French and German Banks will lose their shirt. This will cause huge financial problems for the entire euro zone and the French and German Economies.
Even though everyone know that those banks have already lost the money. But, the losses havenâ€™t been factored onto the books yet.
Thinking about a short sale?
I can help you short sale your property and never pay the bank another penny. Send me an e-mail at firstname.lastname@example.org. 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 303-521-0984
Discover how other sellers successfully completed a short sale and request a free consultation by clicking here.
Thinking about a loan modification?Our Westminster loan modification guide will show you how to reduce your mortgage payment, keep your home, and get back on your feet. Request your FREE copy, below!
Thanks for reading this, Dan Hopper.
View My homes for sale at www.danhopper.com.
Dan Hopper specializes in loan modification assistance and short sales in Denver, Colorado. Denver Loan Modification Help, Denver Short Sales. Denver Realtor. Westminster, CO Loan Modification Help, Westminster, CO Short Sales, and Westminster Realtor.
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Dan Hopper, Remax Alliance, 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 Dan Hopper's personal views and do not reflect the views of Remax Alliance.
This information on Stop Foreclosure: A Reckoning for the Banks, Or Not? , is provided as a courtesy to our viewers to help them make informed decisions.