Monday, October 31, 2011 / by Lynn Horner Baker
North Metro Atlanta – Many lenders do not own the loans they handle. Instead, they are paid by the actual loan owner to collect payment.
In my opinion, the banks make millions by understaffing their foreclosure departments? Here's a real life example. A bank forecloses on a house and waits for over a year to list it for sale.
A year sitting in disrepair causes the home to sell for $30,000 less. But, the lender makes more money. Why? They might save $100 million by understaffing the department that handles delinquent properties.
Click here to discover how other sellers successfully did a short sale and avoided foreclosure.
Here are a few examples of how the owners of a loan lose money because the lenders don't do their job.
Example #1: Not giving buyers an answer on a short sale within one week. We took over a short sale from another agent. A buyer came along willing to pay 150k. They had been told they could buy it at that price for 150k, because the owner owed less than that.
When they found out it was a short sale they decided to walk. This was because they didn’t want to wait for 90 days. We told them they could buy it for 140k, if they waited for the 90 days.
They decided to stay on board. Wells Fargo accepted the short sale, but countered at a price of $141,500. The investor on the loan lost $8,500.
Example #2: Not following up on foreclosures properly. I drove past an abandoned house every day for a year. I looked up the owner to see if they might want to sell the house.
That’s when I saw that the home had been foreclosed on February 4th, 2009. In July 2009, we talked to Ann Rafferty at Bank of America’s, Simi Valley California office.
She told us that they were servicing this loan. She said if I had a buyer, I would need to contact the homeowner. “It’s not owned by us. You need to contact the homeowner if you want to sell the house. The property has not gone to foreclosure sale,” she said.
We told her the house had already been foreclosed upon. We asked her if they ever communicated with the foreclosure lawyers.
“That’s interesting,” she replied. “My records show it hasn’t gone to foreclosure. I’ll check in with the foreclosure department and verify whether it has or hasn’t been foreclosed upon.”
We asked another agent what he had thought the house would have sold for previously. We both agreed that if the house had been listed in April 2009, that it would have sold quickly for between $140,000 and $150,000.
Today homes similar to this one are selling for $70,000 to $80,000, depending on the condition. This home is in pretty bad condition. So, we can conservatively estimate the loss because of lender negligence and a reduced selling price to be more than $60,000.
As you can see, lenders are making huge profits at the loan owner’s and shareholder’s expense. Many of those loans are owned or insured by our Federal government, and therefore the American Taxpayer. 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 Lynn@HornerBakerPartners.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 770 579-4060
Discover how other sellers successfully completed a short sale and request a free consultation by clicking here.
Thinking about a loan modification? Our North Metro Atlanta 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, Lynn Horner Baker.
Lynn is a Real Estate Agent and owner of Horner Baker Partners. North Metro Atlanta Short Sales Realtor:
Phone: 770 579-4060. Lynn@HornerBakerPartners.com.
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