Bosch Team Real Estate Blog Spot

In areas within the country that witnessed double digit declines in home values, home owners have been struggling with whether to continue making their monthly payments or walk away from their homes.  Coupled with the fact that efforts towards modifying loans has led mostly towards rate and term adjustments and it's easy to see why homeowners are so frustrated.  Most homeowners we speak with that are in this type of situation understand that a rate and term adjustment, when the home is still upside down by double digits, is simply a temporary stay of execution and that they will be forced to short-sale their home at some time in the future.  The question is, should lenders be forced to consider principal reduction modifications?  Without them, are they not setting up their investors for failure?  In other words, if they get the loan performing once again and turn around and sell the loan as a performing loan, only to have the borrower short-sale the property in the future, are they not misrepresenting the situation to their shareholders?  Please reply with your thought and comments?

As an Agent handling REO sales for many banks, we've found that the number of deficiencies has risen while the number of actual REO opportunities has diminished.  How can there be close to 300 Notice of Trustee Sales per day without the inventory entering the market?  This is a question we've posed to many Asset Managers.  Their explanation is that the Obama Administration is placing substantial pressure on their institutations to exhaust all possible options for Loan Modifications before foreclosing on property.  While it does make sense to try to help people keep their homes, the reality is that many are only postponing the inevitable.  Given the double-digit decrease in values, many of our clients who pursue these options often ask whether they are gaining anything other than a temporary stay of execution.  The answer for most is no.  Therefore, many would be well served to take the "hit" now and sell for a loss versus stringing out the inevitable for years to come.  The reality is that until these homes begin hitting the market, we will not be able to solve the problem in our market.  It's time the Obama Administration, and more specifically The Department of Treasury, leave the real estate market alone so that it can begin healing. Your thoughts and comments on this are greatly appreciated!!

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The Successwebsite team