Video 69: The government likes to tell people how they are spending their money to help people, to help secure the housing market and to help with things like loan modifications and short sales. First part of the rant… it is not their money, they have no money, the government only has money by taking it from you, your friends, your family and myself. And what they are doing with the TARP money is making life miserable for many of those they have taken the money from. If you are doing a short sale the money you are paying for the housing assistance may be the same money that is preventing your short sale. Would love to hear your thoughts, you can leave a comment or e-mail me Dean Ouellette.
Dude, that was like a “what not to do when you are driving” PSA!
.-= Kristin LaVanway´s last blog ..Heading Downtown – Scottsdale, AZ – 2009 in Review =-.
But I was wearing my seat belt, which I dont usually do, so better than normal.
wow Speak you mind huh
I connect with people who have no speakers at work
http://www.youtube.com/watch?v=z_A2jY6-rRo
Thank you for your rant!
David Pylyp
Living in Toronto
Having gone through a foreclosure myself, I’ve got to say that a short sale is significantly harder on an emotional level than a foreclosure is. It’s also a hell of a lot more work for a home owner.
My bank wouldn’t even consider a short sale for my situation, which to me is completely stupid since they ended up selling my house at auction for less than a short sale offer. On top of that, they paid attorney’s fees, a cash for keys payout and a slew of other expenses that they wouldn’t have paid in a short sale scenario. Obviously that wasn’t the intention, because make no mistake, banks are in the game to MAKE money.
My opinion: It’s not that the banks don’t know what they’re doing… it’s that the left hand doesn’t know what the right hand is doing. They’re using tactics from years ago (when the market wasn’t upside down) to repossess “assets” that are no longer assets, but liabilities.
In the past, if a homeowner stopped making payments, the bank could take the home back and break even on it, or even sometimes make money (if the owner didn’t refinance). Now, banks are sometimes losing as much as the house is worth on a single transaction!
As always, big corporations are slow to make the change into new techniques. But as you see in the loan modification arena, they’re starting to come around.
My bet is that in a year, there will be significantly more short sales going through simply because they will not be able to sustain themselves letting hundreds of thousands of dollars slip through the cracks on each transaction.
Just as we’ve seen in the loan modification arena, it started out slow, but banks are starting to put systems in place to keep homeowners in their homes and the process is speeding up quite a bit. Furthermore, banks are starting to actually deliver significant payment reductions on loan modifications whereas they were reluctant to do so before.
Just my thoughts.
I actually got your post from Calie, you can thank her for a new subscriber. :)
.-= James´s last blog ..The Average Homeowner Can Save Between $300 – $500 MONTHLY =-.
David, interesting concept, will keep an eye on it.
James thanks for stopping by. Your story is not uncommon. MOST of the time, almost all the time, it does not make sense for banks to say no to a short sale if the house will go to foreclosure, there are cases, PMI insurance, TARP matching funds where it does make more sense to go to foreclosure, take less money when it sells at foreclosure, then get the govt handout or insurance money.