07/24/2009

PREVIOUS POST
What do Banks Want! So what do banks really want from borrowers that can’t make their payments? In most cases banks want the borrower to find a way to pay regardless for financial difficulty. Can you say “ you can’t get blood from a turnip”. Apparently this saying was not covered in the MBA programs most of these execs attended. While working at my Short Sale business I’ve noticed two very pronounced trends from lenders. 1. Banks are slow to process mortgage workouts. 2. Lenders do not want to foreclosure and own your home! I’ve seen antidotal evidence of this as I meet with distressed homeowners around the Northern Va area. I’ve continued to hear stories from borrowers who want nothing more then to stay in their homes but are forced out because of slow unresponsive lenders. Recently, I read two articles highlighting these issues. In the Wall Street Journal article, the reporter details some of the challenges of loan modifications. In another article posted by Cleveland.com, the writer highlights the growing trend of lenders not foreclosing but rather leaving the homes vacant and in a state of limbo where the bank doesn’t transfer the title and leaves the previous homeowners stuck with a property that’s in there name but they can’t live in. Leaving the previous owner responsible for the taxes and upkeep. Talk about craziness! So what to do you ask! Well, every situation is different. I would suggest lots of research and possibility speaking to an attorney and/or accountant who understands the ramifications of a foreclosure on your personal situation. If you are thinking of doing a Short Sale or want more information call a COUPLE CDPE (Certified Distressed Property Experts) Short Sale experts in your area. These Realtors have had special additional training on how to successfully close these types...