Four Ways Lenders Wreck Normal Heights Short Sales – It's San Diego Summer - finally. We've gotten through the hazy days that almost seemed like a winter with a bit of rain and now we're in for the long hot slog of summer. And are the banks doing their best to help homeowners in need of financial relief? Are Banks Helping San Diego Foreclosure Buyers Find Great Deals? Some are.
Some are not.
There are probably many more, but here are Four Ways Lenders Wreck Normal Heights Short Sales, losing money for themselves and the loan owner in the process.
Number One - The answer for the buyers takes more than a week.
Think about this one for a minute. You've got a potential Normal Heights Short Sale. As a bank you know the borrower is hurting, probably in trouble, AND is looking for a way out. You the Lender get an offer to purchase, yes it's for less than is owed, but you know for a fact that a Foreclosure will take even more money from your pocket, hurting everyone in the process from borrower, to loan servicer, to buyer... and you as a bank don't get the buyer a quick answer. The buyer as a result is against looking at short sales and as a result there goes another potential sale from the market. Inventory stacks up, prices continue to fall, mass hysteria.
Number Two - Not giving a Normal Heights Short Sale a Loan Modification that would end up as a NET win for the lender.
There are plenty of examples where a borrower has had life come to them on life's terms, where the unexpected, a job loss, an injury with resulting medical expenses, or some other hardship has knocked them off their feet. They're up, they're standing, they're ready, willing and able to go back at it and attack life again, all they need is a little help from a Bank to get them into a payment that can stem the tide... and the Lender says no.
The sad truth is that there are a percentage of people who would love to stay in their homes, even though upside down, all they need is a measure of time to get the ship righted, to get things back on track. The Bank turns down a loan modification that would end up putting more money in the Lenders pocket over the life of the loan, and lets the home go to foreclosure or another Short Sale. Of the Four Ways Lenders Wreck Normal Heights Short Sales, this is the one that makes me shake my head the most. With a sane financial practice that Yes - does lose the bank some money - but less in the long run - this could be the win win that helps steady the real estate market.
Number Three - Lenders Not Following Through on Foreclosures Diligently. This is a testament to the wave of distressed homes on the market. The sheer volume of properties that deluged the Banks led them to hand over the handling of these to many attorneys that did file the paperwork... and then let things slip into stagnation.
Personally, I know of home owners that were behind on payments for eight months (an one that was 2 years) before the foreclosure process moves forward. This isn't helping the market settle.
Number Four - Related to number three, the final of the Four Ways Lenders Wreck Normal Heights Short Sales... Not Listing the Foreclosed Home For Sale Quickly. Driving through some neighborhoods my client was quick to point out the many homes that looked vacant. Knowing what we know of the recent announcement of the 875,000 shadow inventory homes that are bank owned and not listed for sale... this is yet another way the Banks aren't helping the market settle.
If the Lender was local and knew the market do you think that they would let this happen?
When you see the depth of the problem, packaged loans resold to offshore investors around the globe, the trench that we have dug here is taking a while to dig out of.
The Nine Alternatives to Foreclosure still offer borrowers a way out... if only the Lenders would get more on the stick... we may find our way out sooner.
Though for the moment we've stopped digging down... these big Four Ways Lenders Wreck Normal Heights Short Sales are a window into the workings of the real estate market as a whole, and the challenges that lie ahead as we move towards a more balanced market.
Solutions are here, give em an email or a quick phone call and we can talk about it. Get some answers, ask some questions or just vent.
Thanks for reading this.
