Wednesday, October 19, 2011 / by Lynn Horner Baker
Are Banks Playing Games With Their Financials?
North Metro Atlanta – Some experts speculate that banks don’t like to approve short sales or loan modifications. Here is the reason they think that.
They assume that lenders are reluctant to speed up short sales or loan mods because they want to hold off the day of reckoning. Let me explain.
Click here to discover how other sellers successfully did a short sale and avoided foreclosure.
Let’s say that Joe owes $300,000 on his mortgage. The house appraised for $300,000 when he bought it.
However, the market value has dropped to $220,000. Joe gets behind on payments. Unless Joe has an extra $80,000 lying around, then his bank just lost $80,000.
You know it, I know it, the bank CEO knows it, and even Joe knows this. However, the bank’s investors don’t know it at this point. Why not?
The $80,000 loss hasn’t been factored into earnings yet. If the bank can get the short sale and loan mod process to drag out, then they can delay putting the losses onto their books.
Now, I’m sure you are saying, “But there are SEC regulations that forbid this from happening. So let’s look at a real life example of this happening in the world right now.
Germany and France are having a hard time agreeing to bailout Greece. Now, I’m sure that they have rules similar to the SEC in America.
Sarkozy and Merkel both know that if they don’t bail them out, then French and German Banks will lose their shirt. This will cause huge financial problems for the entire euro zone and the French and German Economies.
Even though everyone knows that those banks have already lost the money. But, the losses haven’t been factored onto the books yet. 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 Cobb County & Marietta 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.
100% Released From Your Mortgage or We Will Pay You $1000.00!
View additional solutions at www.AtlantaShortSaleSecrets.com.