Only Franz Kafka could create a world as hopeless as working to get a loan modification. As CDPE's (Ceritifed Distressed Property Experts) we have listened to the webinars about doing our best to try to keep people in their houses versus a short sale. My partner Charlene Humphreys and I will work up to 200 short sale possibilities this year alone, and in Oklahoma we have not experienced the devastation of hard hit markets. I can only imagine what short sale teams are going through there. Here is my statistic for the success rate of loan modifaction this year, ZERO. I can't believe that any real estate activity is more frustrating for the homeowner and the Realtor than this. You want to save the house but the system is rigged, and the governments program they love to talk about is not working. Folks this is crazy. While the mortgage companies fiddle, Rome burns. By the time you may be able to get the homeowner to the promise land, you have seen their credit score drop as the mortgage companies report their bad credit, all the time reassuring the homeowner that it is in process. In process is the new code word for, Drop Dead.
We want to help people in distress, not just make a commission off others misery. For those who work short sales you know that having to deal with the emotional turmoil of the distressed homeowner is a cause for burn out. The paperwork drill can be Byzantine with 200 pages of documentation not unusual. Something must be done. We save Wall Street and Corporations, and I am okay with that, but only if we look at the American Homeowner with the same concern. My short sales are based on hardship, not on people just deciding to quit paying and avoiding deficiencies. I am linking an article from today's New York Times that you should read. It details what I am talking about. This is a call to action because our client's deserve better.
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We are a team that specializes in residential & commercial investments, short sales, new homes, buyer relocation. I'm in my 20th year of RE, and have a CRS, EcoBroker, e-Pro, ABR, CDPE, and CCIM soon.
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The Loan Modification program is a joke. The banks are so under staffed they can't the volume.
Good luck for continued success with your short sales. Many agents and their clients are frustrated by the lack of response by asset managers. There are hundreds of short sale listings in our multiple listing service and many will go to foreclosure rather than successful transactions.
Tony, I worked for the Senate in the 1960's while I was at GWU. I learned a dirty little secret. Politicians pass bills that they can go home and crow about, but they never fund them. I think this is one of these.
Roy, we have about a 95% success rate on short sales because we have both done them for years. We could write dozens of post about Realtors taking short sales on without a clue how to do them. I do think that CDPE is helpful to anyone thinking about working them. However, two days of training doesn't make you reaqdy, but it's a start. My frustration is with trying to help people avoid the short sale or foreclosure. It doesn't pay, but it's my job and responsibility as a Realtor.
The banks are way under staffed to handle loan modifications. Also, I heard the banks will offer this for free in about a year. See what happens
IMHO, the banks have no incentive to modify loans and the conversation is mostly window dressing for their stock prices. Here's a post I wrote on Chase's Loan Mod Program:
Chase loan modification plan to benefit shareholders not homeowners
Similar is some banks "willingness" to do short sales.
Bank: "Continue to pay your mortgage and we'll approve the short sale."
Thanks for posting the thoughts and the article.
:) PS
Patrick, thanks for the link, and I will read it. Consensus is that Chase is the worst. As to BOA it depends on what week it is, very inconsistent. I have been in real estate 20 years, and I serve on 3 different Boards. I believe that like lawyers we need to do a little pro bono work. I just need any sincerity on the mortgage holders part. This is sad.
We are achieving success with short sales but the loan modification is absurd. We too have ZERO successes and have not heard of anybody else getting anything done as well.
Jim, I knew that i was not alone on this. I see reports from around the country. Good luck with your short sales. FYI, I am getting some benefit from the Advanced CDPE webinars. The last one had the max of 1000 listeners.
The loan modifications I've seen only cause the homeowner to increase their loan balance due to interest and penalties, causing their payments to increase, forcing them into a short sale that they should have done in the first place, then decide they won't accept a short sale if the sellers doesn't agree to a $20,000 promissory note to be paid back with payments over $300 a month. When they won't agree, the bank forecloses! PS: Just venting about my short sale I've worked for 5 months!
Kay, please vent. It is transactions like that make me want to go back to shots of tequila and I don't care if i get the worm.