Wednesday, March 30, 2011

50 states investigation and Banks talking: Short Sales, $20,000 cash for keys?

Today my  Dad called excited to hear the news that the banks might be considering short sales as answer for homeowner with up to 20,000 cash for keys.  Dad spent some time reading the article to me over the phone, the excitement mounting in his voice as he explained that in his opinion the bnk might have to go back and redo the things they did wrong. I disagree but it would be nice if he is right.
Proposed settlement would force banks to allow short sales for delinquent homeowners

BofA, Wells, Chase negotiate mortgage deal

Deal would force banks to allow short salesd
Foreclosures Evictions and YouFlorida AG 2 million settlement ...

If you have read the last link Florida AG 2 million settlement ..., then the next question will not surprise you at all.  I ask, " what the heck?"  Short Sales are already in place as option for the home owner. This is a serious negotiation, it is something to crow about; to tell the banks  to enforce what is already an option?   This investigation was launched after THOUSANDS of homeowners complained to attorney generals, providing documentation and pressure to address the fraud of the banks. After many  homeowner went to court trying to address fraud.  Is this negotiation helping homeowners who have lost their homes due to FRAUD perpetrated by the banks?

Now, the thought of up to $20,000 cash for keys is exciting for the homeowner, but does not even come close to the amount most homeowners lose in giving up their homes - without a "grumble". The fact that lawmakers still view foreclosures as caused by irresponsible homeowners and not to be rewarded with $20,000 cash, shows they have very 'little' understanding of what has been happening in this country for the past several years. They don't seem to see the banks as perpetrating FRAUD upon people and/or courts. The results of the investigation indicate there is fraud, or there would be no need to negotiate.

The new programs that are being considered as part of the negotiations might help some. In the past few years short sales were an option, but with tight time lines and a declining market many  real estate people said  that banks would not consider the offers they could get. It took a year or two for many real estate agents to learn how to negotiate short sales and get the banks to work with them more quickly.   BOA discouraged us from even trying saying that the price I thought we could get would not be approved and that there was not enough time. Remember this quite a while ago.

If banks are going to offer short sale then all offers must be considered in my opinion.  And plenty of time to allow the short sales, is crucial for success in short sales. Our neighbor's house sat on the market for over a year before losing it totally to foreclosure.  Another neighbor's home sold after sitting for several months as short sale and I suspect that our foreclosure helped along their short sale as there were now 2 homes sold for way less than original value.  The homes were revalued in the neighborhood for 2/3 the original value.   So essentially the new owners are paying payments at a fraction of the rest of the neighborhood is paying.  Those homeowners are barely hanging in as jobs change and the economy changes. In other areas of our city, homes are selling at prices that are under 1994 prices. "We've come a long way, baby!"

So back to the article,  if Dad is right and they offer ex-homeowners $20,000, does that make anyone happy?  The bank steals, defrauds and breaks rules, creates tax liabilities, degenerates cities  and the homeowner should allow it for 20,000 greenbacks.  Yep sounds like the "Merikan way", alright. Where do I sign up? (not)

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