In recent months it was apparent some of the short sales that made great sense were not making sense to the banks. We would have a fair market price for the home and a great buyer. They would just close the file and foreclose on the borrower. The question was always, why? The story is basically the same but let me set up the scenario. This story is played out all over Cape Coral and Fort Myers.
The borrower thinking the market would never collapse to the degree that we experienced refinanced for a variety of reasons (2 of my customers over 70 used the money to help their children). Others just purchased homes that were 60% more valuable than they are today. Since the collapse, they have lost their jobs, had health issues, and lost their retirement in the stock market and other retirement venues including owning other real estate.
The bottom line is they could no longer pay the mortgage payment. They need to survive. The program used to be that the banks did much better with a short sale than a foreclosure. A short sale was much quicker; the property was in better condition; the legal expenses were thousands less; it was a much better scenario for the banks in taking back a property.
Step in the Federal Government to screw this up. The banks that collapsed and their debt was offered to other banks at say 70% of value by the FDIC. You must watch the following YouTube video: http://www.youtube.com/user/fiercefreeleancer. Please pass this video on to everyone. It illustrates the greed of the financial institutions and lack of thought by the Federal Government. The ones getting hurt are the public. The fall out is not just the people losing their homes. The fallout from this has far reaching effects for the total economy and valuation of everything.
Don’t hesitate to comment and repost. Please contact your Senators and Congressmen. Let them know how disappointed you are in the current financial idiocy and to help real people.
Contact me at Linda@Flackteam.com or www.TwoCityLink.com.