Jul 15

NEW YORK CNNMoney — Just as the housing market began to collapse near the end of 2007, a real estate agent in Bridgeport, Conn. asked Regions Bank if it would accept a $102,375 bid on a home that was underwater on its mortgage.

via CNN MONEY

Jul 03

According to the CoreLogic study, 65% of short sales that are resold within six months for profits of 40% or higher are “suspicious” — with a significant possibility the lender accepted a low payoff. Most of these transactions go undetected by the banks being defrauded, but some lead to prosecutions and convictions.

via latimes.com.

Jun 20

CitiMortgage, the mortgage servicing arm of Citigroup is paying borrowers an average $12,000 after completing a short sale this year.

via HousingWire.

Jun 19

Bank of America completed more short sales than it unloaded previously foreclosed homes every month for the last year and a half

via bubbleinfo.com.

Jun 04

According to the CoreLogic study, 65% of short sales that are resold within six months for profits of 40% or higher are “suspicious” — with a significant possibility the lender accepted a low payoff. Most of these transactions go undetected by the banks being defrauded, but some lead to prosecutions and convictions.

via latimes.com.

May 12

Everyone always discusses the grand irony of short sales. That is, we wait and wait and wait for the bank or the negotiator (or processor) at the bank to finally get to our file. Then, all of a sudden, they want something. They cannot find the listing contract; they do not like a signature; they want updated bank statements. Whatever it is, the bank wants it and wants it now!

via biggerpockets .

May 10

About 60 per cent of the 4.2m borrowers were up to date with their payments. The rest were at least three months past due, Mr Laughlin said.

via | bubbleinfo.com.

Oct 28

When homeowners are unable to pay their mortgage, there are basically a few options that the banks have. First, they can foreclose on the home – take back the home which is the collateral for the loan they made. Second, since so many of todays homeowners are “underwater” on their mortgages – owing more than the value of their home, and are unable to pay, banks could write down the value of the outstanding loan, since the collateral isnt worth as much as the loan is anyway, in an effort to keep the homeowner in the home and eventually recoup the market value of the home. A third solution is allow a “short sale” where the homeowner sells the house for less than they owe on the mortgage – ie, they sell the house for $200k and the banks takes that money instead of the $250k thats owed on the mortgage.

via Seeking Alpha.

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