Michigan Short Sale Help: Banks Don’t Approve Short Sales ...They Don’t Want To Show Losses?

Sept. 16, 2012 - PRLog -- I’ve heard the following myth from a lot of people. I’ve even seen this myth publicized in newspaper articles and quoted by so called financial experts.

Here is what people tell me.

“The banks can’t afford to approve loan modifications because they don’t want to take the losses on their books that fast.

Also, their investors may not approve the short sale, because they can’t afford to write off too much loss at once. And the circle goes around and around”, they say.

This common myth isn’t true. Let me explain why. The odds are that your loan is not owned by your lender. For example, 80% of all Bank of America’s loans are not owned by them.

The biggest holders are the Government Sponsored Enterprises, also called GSEs. The GSEs are Fannie Mae, Freddie Mac, and Ginnie Mae. These entities are accustomed to losses.

In fact, they have loan loss reserves on the books. The other entity that is accustomed to losses is FHA and VA. Between 65-70% of all US mortgages are owned or insure by the GSEs or FHA & VA.

Even small local banks don’t own a large percentage of the loans they hold on the books. For example, another agent I know lives in a small town of 60,000 people.

There is a bank that dominates the lending market in the area. You would think this small bank was lending their own money. Not so. The majority of their loans are sold off within 12-18 months after they are written.

Here is the real reason that loan modifications and short sale are so tough. Remember, loan modifications and short sales will usually net the owner of the loan more money than a foreclosure.

The people who process the loan modifications and short sales won’t lose any money if the home is foreclosed. Here is a classic example of this. An agent is negotiating an FHA short sale with Bank of America.

The short sale negotiator told him it would take her 2-3 weeks to review the offer and then submit it to FHA for final approval. How long was it going to take FHA to review the submitted file and respond?

She told the agent that that FHA had a 72 hour turnaround from when she submits the file to her. It’s pathetic. In this example, BOA isn’t losing the money, FHA is losing it instead.

So, the person who is actually losing the money has a faster turnaround time on reviewing a short sale file. No, the system isn’t working.

However, no one in Washington or at the big banks really seems to care. 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 rick@rickgiese.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 Rick Giese  at Toll Free 1-800-274-5656

Discover how other sellers successfully completed a short sale and request a free consultation by clicking here.http://www.miforeclosurehelp.com/


Visit My Loan Modification Website www.miloanmodhelpdesk.com/
Visit My Short Sale Website http://www.miforeclosurehelp.com/
Visit My Short Sale or Stay Calculator Site http://www.mishortorstay.com

Thanks for reading this, Rick Giese.

Rick is a Real Estate Associate Broker at RE/MAX Advisors.  Macomb, Oakland and Southern St Clair Counties  Short Sales Realtor:

Phone: 1-800-274-5656. rick@rickgiese.com.


Rick Giese specializes in loan modification assistance and short sales in the Macomb, Oaklandand southern St Clair County Areas of Michigan. MacombLoan Modification Help, MacombShort Sale Help. Oakland Short Sale Help Macomb and OaklandCountyMIour services are offering sellers another option besides pre-foreclosure foreclosure or bankruptcy that can affect their credit for years. We are currently offering our services in the Richmond, Shelby Township, Macomb Township, Chesterfield Township, New Baltimore, Clinton Township, Sterling Heights, Mount Clemens (Mt Clemens) Fraser, Harrison Township, Warren, Roseville, St Clair Shores areas of Macomb County Michigan Madison Heights, Troy, Clawson, Royal Oak, Rochester, Rochester Hills, Berkley, Birmingham areas of Oakland County

IMPORTANT GOVERNMENT DISCLOSURE: You may stop doing business with us at any time. You may accept or reject the offer of mortgage assistance we obtain from your lender (or servicer). If you reject the offer, you will not have to pay us for our services. The above brokerage is not associated with the government, and our service is not approved by the government or your lender. Even if you accept this offer and use our service, your lender may not agree to change your loan.