NEW YORK (CNNMoney.com) — Banks say they want to help troubled homeowners, but they are delaying deals that could save everyone - including the lenders themselves - a lot of time and money.
Lenders are taking much longer than necessary to approve short sales, according to Duane LeGate, of House Buyers Network, a short sale specialist.
In a short sale, a homeowner who cannot keep up with their loan asks the lender to take a dollar amount less than what is owed on a home’s mortgage, and forgive the remainder of the unpaid debt.
So if a borrower has a mortgage balance of $100,000 and finds a buyer who will pay $95,000 for the house, the lender agrees to accept that $95,000 and close out the loan.
No Responses
Working with loss mitigation, especially the short sale or DIL sections (from their paperwork they appear to be the same entity at least with my servicer) is like being in a black hole or being stuck in a paperwork vacuum. I have sent my package in 6 different times to four different fax numbers and they still claim not to have it. I have also scanned the package and emailed it to two different people as well.
If they can’t even receive and process the information how can they ascertain, or present to the investor, an acceptable offer?
Posted on May 28th, 2008 at 11:36 am
WHy should the government pay for homeowners?? The only reason why they needed to get involved with Bear, is because if Bear went under, so would all the other major financial institutions, in return would destroy the economy and the homeowners would certainly be screwed. In addition, how is forcing a company to sell at $2 a share a bailout? It is more like a rape! JP uped the price, but the government forced Bear to sell at $2 a share or be liqudated!
Posted on June 3rd, 2008 at 12:29 pm
not just in California
Homeowners are suffering everywhere !!!!
I am in Miami, FLorida… & Isaac, part of the problem was the gov’t . Allowing fannie mae guidelines to stretch & look the other way, for allowing the illegal activities that were going on in the banking, mortgage & real estate industry….
we were here in the 80’s, when realestate suffers the economy is almost at a stand still.. people are going to pay their mortgage, before going to the store to buy a new pair of pants.
While the gas prices keep increasing (thank BUSH for that costly war) the restaurants, & food markets have also increased their prices…. yet the gov’t does nothing to raise the minimum wage !
the Gov’t allowed for this to happen because in the REpublican world the rich keep getting richer and the middle class is pushed further & further into the low to starving class…
This is CRAZY !!!!
why don’t they tell ALL THE BANKS across the board, those that have loans give them all a 4% fixed rate (isn’t that what the fed rate is now??? or whatever the rate is - because the feds cut the rates - the banks have not passed that on to the borrowers or potential borrowers - —
SOLUTIONS !!! no matter where it comes from that is what we need. — we can keep blaming each other & everybody & their grandma — but the problems still exist — stop pointing fingers and use those thoughts & fingers to find solutions –
Posted on June 5th, 2008 at 9:14 am
Dear PIST:
Why doesn’t the federal gov tell you how much money you can make? The bottom line is greed. Lenders are greedy and so are
homeowners. You sold your security for an ADDRESS and a LIFESTYLE
marketed to you by advertisers. Get something real in your life.
JB
Posted on June 5th, 2008 at 10:21 am
jb I like that saying sold for an address and lifestyle, I guess that is why so many serve or have served in military to protect your address and lifestyles, I wish people realize a lot of security clearances will be lost due to credit with this economy screw job, thank you bush 1992 and junior 2008 you leave office worse than ou BOTH found it but texas is ok for now
Posted on June 7th, 2008 at 9:47 am
that’s right, the one person that should never be blamed for signing the note on a screwed up mortgage is the homeowner. When the mortgage lenders went out and found ways to attract more capital growth opportunity, they should have had to explain the entire scope of humanly possible financial scenarios to every applicant. HOW STUPID! do you watch the news? these people bought houses that they KNEW they could not afford. They signed notes praying that the interest rates wouldn’t go up. They gambled, they lost, and nobody owes them anything. Many of them LIED on loan applications. Were the financial institutions stupid? Yes. Were the homeowners stupid? Yes. the big deal here is that you need to be accountable for your actions. These loans came about when mortgage rates had been low for a LONG time. People should have expected them to go up (the whole “history repeating itself” cliche).
There should be no easy ways out. This whole country needs a great big dose of “wake up and smell the responsibility.” The current state of “how is the government going to bail me out?” is literally destroying the American way of life. What else do you want to depend on them for? Once they control your healthcare, retirement, education, your mortgage, etc, why not let them send you groceries, or tell you where to shop and how much to spend. We could all just go to work and let the government take most of the money and hope that they take good care of us. Bailouts, social programs, stimulus packages are all ways to make you depend on the bigger more controlling government. Mortgage companies should fix their own messes, and homeowners should fix theirs. Learn a lesson and move on.
“A people of the government, by the government, for the government…” Wow, that doesn’t really have the same ring to it, now, does it? If you made your bed, lie in it. Then work your butt off to fix your mistake, then don’t do it again and teach your kids how to be smarter than you. …or, better yet, show your kids how sorry and stupid you can be when you have a big ugly government to fix your messes. What a great idea!
Posted on June 10th, 2008 at 6:25 am
DR ????
i understand you are angry… I am not asking the gov’t to bail me out of anything….
i was one of the few people who put a good down payment and had monthssss of reserves in the bank, have built my credit over the years mid 700’s when we bought the house. I did not lie on my original application which by the way was the only document I received and signed for. After that the loan officer said she would take ‘care’ of everything since she worked at the bank. we did not receive any other documentation until closing. (she got the appriaser, the title, everything). After all she was the ‘professional’ in her field. (what a joke) i know now from learning on this website & others that most brokers take a weekend course and go feed off the sheep like a bunch of hungry wolves w/no training just Greed. (and those brokers/loan officers are the ones giving the good ones a bad bad reputation)
so when we did fall into a true hardship last year, the first thing I did was contact the bank to see if we can refinance, especially after receiving a different advertising every two weeks from them in the mail or email stating refi now, no closing cost, rapid refi done within a week etc etc etc.
We were told There was nothing they could do, the market had dropped and appraisals were being ripped to shreds, and home values have dropped.
So, option 2 was to contact the bank again and see if we can come to an arrangement / loan modification. The bank is not obligated to do so, i know, but if not they would have another foreclosure property on their hands in a few months. So as a good customer, (which by the way i have never paid a credit card or mtg late in my life) was trying to do the right thing by facing up to the situation. All those years of saving money, of doing the right thing didn’t seem to matter. it didn’t seem to amount to squat.
Or maybe you dr & others think I should have been irresponsible & taken out a 100% ltv and had no money saved, poor credit & who is now praying for the gov’t to bail them out???? NO THAT IS NOT RIGHT… those that did should be held accountable, as those broker/loan officers/realtors/appraisers/bankers who were unethical be held accountable as well.
So DR what SOLUTIONS do you offer ???
Posted on June 10th, 2008 at 8:45 am
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