Fort Collins CO – We at the Stop Foreclosure Institute receive emails all the time that go something like this “The Bank’s Short Sale Problems are not that simple.
A bank can’t afford to write off too much loss at once. Also, their investors may not approve the short sale, because they can’t afford to write off too much loss at once either. And the circle goes on.”
Click here to discover how other sellers successfully did a short sale and avoided foreclosure.
Here is why this flawed assumption is incorrect. Most of the large, national banks do not own the mortgages they handle.
As an example, Bank of America does not own 80% of the mortgages they service. The biggest holders are the GSEs: Fannie Mae, Freddie Mac, and Ginnie Mae.
These entities are accustomed to losses. The other entity that’s set up well and accustomed to losses is FHA.
Most of the remaining loans are owned by Wall Street Firms, Pension Funds, and other professional investors. Most of the loans owned by them have already been written down in value dramatically.
In a few, isolated instances, the “We don’t want to write off losses to fast because it will hurt this quarter’s earnings” thing applies.
But, it is also illegal because of accounting rules. Not writing off losses that you know about could be considered insider trading by many.
Besides, when you push the loss on non-performing loans off to the future, the losses are bigger in most cases. Any prudent person would agree that making losses bigger is bad business.
The bigger problem is that the lenders don’t have enough staff to process the files. They need short sale negotiators to submit files to the owners of the loans.
As an example, on a recent FHA short sale, the negotiator told us it would take her 2-3 weeks to review the offer and then submit it to the FHA.
However, she did tell me that FHA only has a 72 hour turnaround from when she submits the file to them. That is pathetic.
Here is why the lender doesn’t have any incentive to hire on more staff. On that file, the lender isn’t losing the money, FHA is losing it.
Therefore why should the lender spend money to hire on more staff? There is no incentive to do so. Thinking about a short sale?
I can help you short sale your property and never pay the bank another penny. Send me an e-mail at RobKittle70@msn.com. I will contact you for a free consultation.
When we talk, I will explain how the process works in detail and answer any questions you may have. Or, if you prefer, you can call me at (970) 690-4920
Discover how other sellers successfully completed a short sale and request a free consultation by clicking here.
Thinking about a loan modification? Our Fort Collins loan modification kit has the instructions you will need to get a loan modification approved with your bank. Click here to request a copy.
Thanks for reading this, Rob Kittle.
Rob is a Real Estate The Kittle Team at Coldwell Banker. Fort Collins Short Sales Realtor:
Phone: (970) 690-4920. RobKittle70@msn.com.
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View My homes for sale at www.RobKittle.com.
Rob Kittle specializes in loan modification assistance and short sales in Fort Collins Colorado. Fort Collins Loan Modification Help, Fort Collins Short Sales. Fort Collins Short Sale Realtor Fort Collins CO Short Sales. Fort Collins Realtor.
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Rob Kittle, Coldwell Banker, 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 adviser 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 Rob’s personal views and do not reflect the views of Coldwell Banker.
This information on A Common Myth About Fort Collins Short Sales: Lenders Can’t Write Off Too Much Loss At Once is provided as a courtesy to our viewers to help them make informed decisions.