David Jaffe-…, Real Estate Pro in 60004

Should there be Uniform National Guidlines that Banks & Mortgage Lenders must follow in the Short Sale and Foreclosure Process?

Asked by David Jaffe- CDPE SRES, 60004 Thu Oct 14, 2010

With the current suspension of foreclosure sales by many banks nationwide, it is surprising there are no formal guidlines nationwide for banks to follow in this process. This should also include an Homeowners Bill of Rights for a speedy resolution to their short sale requests.

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After a big crash, there's lots of debris. This is the unfortunate place we find ourselves in. A combination of greed and irresponsibility led to this plummetting of the market value of homes. The chain reaction involves unemployment as well. I picture it like a tsunami. The waves followed by ripples just going on, and on..... Like most tragedies there's a great deal of pain, suffering and regret.

De-regulation of the banking and mortgage industries contributed, but will gov't guidelines be what gets the job done now?
I'm doubtful about the abilities of who is steering the helm of financial recovery.
Politics might not peacefully co-exist with what it's going to take to get recover going. Banks are going to fight to survive to see who's going to come out the other side as the new market leader. They don't have to get re-elected, they want profits now and in the future.

People can send a powerful messageTODAY!. No government policy needed.
Stop doing business with the banks involved and see how fast they change their policies.
Imagine a mass closure of accounts at Bank of America? How long do you think it would take to get the attention of the right people.
Web Reference: http://www.lchometeamsd.com
1 vote Thank Flag Link Thu Oct 14, 2010
It sounds great, but just remember if the government mandates a process that must be followed for short sales then what are banks going to do if it requires more work on their behalf? They are going to find another way.
0 votes Thank Flag Link Fri Oct 15, 2010
WITHOUT A DOUBT................in my opinion too much of the "short sale & foreclosure" process is being left to the bank's creativity............with little regard to the public's needs.
0 votes Thank Flag Link Fri Oct 15, 2010
In a perfect world, yes. Unfortunately we don't live in a perfect world . . . . . . .
0 votes Thank Flag Link Fri Oct 15, 2010
As devastating as this market has been, I, for one, am disinclined to support initiatives that alienate the rights of private business to conduct it's own affairs. In times of distress, historically, have been the times when the public is willing to hand over it's rights, protections and freedoms in exchange for the "illusion" of protection and safety. This is how one is made a slave and a subject to his/her government, in lieu of being a citizen with unalienable rights whose government (supposedly) is designed to serve the citizenry, not the other way around.

There are foreclosure laws and procedures that vary state by state, and the banks are already subject to following those laws and procedures, the current debaucle isn't about there being a lack of rules, but rather, policing the culprits who break the rules already in place. The new HAFA short sale procedures are a step in the right direction as now the vast majority of servicers are signatory to the contract that obligates them to pursue HAFA short sale alternatives - BUT and it's a big BUT, the investors of those loans are in no way obligated to agree. Nor should they be - as helpful as it would seem - for to force them to would undermine our free market capital system and inch us dangerously towards Socialism. My forefathers didn't fight and die so we could become a nation of Socialists. IMHO
0 votes Thank Flag Link Thu Oct 14, 2010
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