Folsom-El Dorado Hills CA – The National Consumer Law Center wrote a White Paper on how banks handle loan modifications, short sales and foreclosures.
They titles their White Paper "Why Servicers Foreclose When They Should Modify and Other Puzzles of Servicer Behavior." Check out the White Paper at this link: http://www.nclc.org/images/pdf/pr-reports/report-servicers-modify.pdf.
The "servicer" they are referring to is a bank that is handling a mortgage for another entity.
As an example, around 80% of all of Bank of America's mortgages are not owned by Bank of America. Instead, they are owned by another entity like Fannie Mae or a hedge fund.
Bank of America is simply handling the accounting, tax filings, and the foreclosure and collections process. The Consumer Law Center thought it was "puzzling" that servicers preferred foreclosure over loan modification.
The reason that the servicers prefer it is because it is less work and they make more money in the process. But, I don't think it is puzzling. Why not?
Because there is almost zero accountability! The owners of these mortgages never check in on the process. They don't know that a servicer denied a short sale offer for $385,000, only to see the property sell for $230,000 as a foreclosure.
Because they are not checking on things Uncle Sam and the owners of these loans are seeing huge, unnecessary losses. Pretty sad, isn't it? Thinking about a short sale?
Thanks for reading this, John J Hayes.
John J is a Real Estate Agent at RE/MAX Gold.
Phone: 530-306-3316. 3hayes@sbcglobal.net.
"Hard Work and Dedication"
View My homes for sale at www.johnhayesrealestate.com/home-search.
John Hayes specializes in loan modification assistance and short sales in El Dorado Hills California. El Dorado Hills Loan Modification Help, El Dorado Hills Short Sales. El Dorado Hills Short Sale Realtor. Sacramento CA Loan Modification Help, Sacramento CA Short Sales. Sacramento CA Short Sale Realtor. Folsom CA Loan Modification Help, Folsom CA Short Sales. Folsom CA Short Sale Realtor. Mather CA Loan Modification Help, Mather CA Short Sales. Mather CA Short Sale Realtor. El Dorado Hills CA Short Sales. El Dorado Hills Realtor.
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Important Notice
John J Hayes, RE/MAX Gold, 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 John J's personal views and do not reflect the views of RE/MAX Gold.
This information on El Dorado Hills Short Sales: Why The Lack of Accountability Has Hurt The Housing Market & US Economy is provided as a courtesy to our viewers to help them make informed decisions.
