Bank of America? Countrywide Fiasco

Here is the latest news from Bank of America on the Countrywide fiasco. While it settles the law suit between the investors and B of A, it does nothing to help resolve the millions of defaulted homes still in the marketplace.http://www.msnbc.msn.com/id/43569643/ns/business-us_business/

JP MORGAN CHASE OFFERS SHORT SALE INCENTIVES?

Broward and  Palm Beach County Foreclosures, short-sales and bank repossessed homes

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  Chase, Wells Fargo offer borrowers $10,000-$20,000 for short sale closings

  June 27, 2011

  ...payments $10,000 to $20,000 if they?ll agree to a short sale, which means they sell the home for less than they owe...re doing homeowners a favor simply by agreeing to a short sale and forgiving the amount they owe. 

The Sun Sentinel is reporting that JP Morgan Chase is offering up to $20,000.00 to some Florida homeowners as an incentive to induce them into agreeing to short sale their properties. On the face of it this looks like progress an innovation from a company that is not known for either.

Chase as well as  all of the other major lenders is experiencing long judicial delays in Florida before obtaining a foreclosure judgment and sale date.  These delays often allow homeowners to live in their properties rent free for up to two or more years. Before we indite the Florida courts it is the shear volume of foreclosures that creates this scenario. Chase figures why not induce a financially distressed homeowner in default into voluntarily selling their home.

On the face of it this seems logical.  But their are several underlying problems with this approach. First, if their are condo dues they must be paid prior to the short sale, or negotiated with the condo association's lawyer. This is in stark contrast to the lenders obligation post foreclosure which is limited to one percent of the original mortgage balance, plus maintenance assessments. So buyer and seller be ware of the lurking condo association dues.

Of course the program is not being offered to all defaulting Chase homeowners. However, it doesn't take a vivid imagination to see how a upside down homeowner, who could otherwise afford to pay their mortgage, might take advantage of this program.

Short sales are complicated and homeowners and investors considering the sale or purchase of these properties should consult a experienced short sale negotiator in order to facilitate the approval of their sale.

BRAGGING RIGHTS/SHORT SALE POWERHOUSE

I try not to use this blog for self promotion. Having said that, let me violate my own rule. Prime Financial Group LLC has been negotiating short sales for investors, owners and Realtors. In the last month Prime has obtained  short sale approvals from Wells Fargo, GMAC and IBM LBPS. These approvals have been far below market value creating equity opportunity for our investors.

We see the lender turn around time improving, and our results can be attributed to our unique proprietary formula for evaluating properties, submitting  short sale packages and negotiating final approvals. If you are seeking a short sale purchase, as an investor,or trying to sell a short sale as a Realtor or owner, we have a program for you. We have proven results, and our approvals are always substantially below fair market value.

If you are in the short sale business, you should not miss the opportunity to call us and see what we can do for you! 267-205-6101.

MODIFICATIONS ARE NOT IN FAVOR AT THE BIG THREE.

Many homeowners have operated on the belief that their loan will be modified by their lender. The reality is just the opposite. Lenders have little or no incentive to modify loans as the statistics have shown that the modified loans are highly likely to default. 

Most of the modified loans are so upside down, ( negative loan to value) that a modification was not in the owners economic interest in the first place. The truth is that good economic decision making is often cast aside when making decisions about your home.  After all, home is where the heart is. 

The Chicago Tribune reports that the FED is withholding payments from the three largest banks for poor performance reviews on their HAMP reviews.  This further reinforces the point that I have been making that short selling these properties is an essential component of restoring this country to economic health. A bloated defaulted real estate market is dragging the entire United States economy down. The banks are still withholding 3 million plus vacant homes from the market out caution for a second large reduction in residential real estate prices which would be spurned by the exposure of these properties to the market. 

 

Owners who are in distress should strongly consider short selling their property.   

WHEN ARE WE GOING TO GET IT!

I have been reporting for the past three years that the mortgage crisis has been driven by unemployment and underemployment. Now the geniuses in the main street media and the Government are suddenly reporting that the mortgage crisis is employment driven.  Does this frighten you? It should? These are the people we are expecting us to lead us out of the great recession or the depression, whatever nomenclature you wish to use to describe it.

Here is a sample of the light bulb coming on in the main stream media.  The reality of the situation is that housing prices are going to continue to retreat until two things start happening. First, employment must improve and not jobs like working at McDonalds, unless you are expecting people to work a 120 hour work week.  Second, the already bloated and growing inventory of foreclosure and pre-foreclosure residential and commercial real estate must be liquidated by the lenders or owners.

Until the inventory is sold and the prices become commensurate to the current market conditions, grid lock will continue. Their has never been a better time to buy distressed real estate in the last fifty years. What are you waiting for?