Wednesday, May 1, 2013
My Ventura County Short Sale Is Taking Too Long Because Lenders Can't Write Off Too Much Loss At Once...WHAT???
Your Ventura County Short Sale Specialist receives 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 get back on your feet. Send me an e-mail at firstname.lastname@example.org.
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 805-208-0823
Discover how other sellers successfully completed a short sale and request a free consultation by clicking here.
Thinking about a loan modification? Our Ventura County 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,
Chris B Johnson.
Chris B is a Real Estate Agent at Prudential Califonia Realty.
Certified HAFA Specialist, Certified Short Sale Specialist
View My homes for sale at www.ChrisBJohnsonRealtor.com.
Chris Johnson specializes in loan modification assistance and short sales in Ventura County California. Ventura County Loan Modification Help, Ventura County short sales. Ventura County Short Sale Realtor Ventura County CA Short Sales. Ventura County Realtor. Copyright 2012 SFI Marketing Institute, LLC. All Rights Reserved. Important Notice Chris B Johnson, Prudential Califonia Realty, 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 Chris B's personal views and do not reflect the views of Prudential Califonia Realty. This information on A Common Myth About Ventura County 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.