Participate in a Short Sale and We’ll give you some $$$ back was the message to a Home Owner…
So What Happened…?
I approached this particular Owner in my capacity as a “Home Retention Consultant” under a contract with Titanium Solutions Inc. Titanium Solutions, if you didn’t know, has been retained by several Lenders to help keep people in their homes if possible and to assist the Banks and Home Owners in keeping the lines of communications open.
If a Modification can’t be worked out, we as Agents and Brokers are encouraged to get the Home Owner to participate in a Short Sale because the banks know it costs them more to go all the way to foreclosure. We pay a referral to Titanium if we successfully close a Short Sale lead provided by them.
They will also pay us a small fee just to help the Lender and Home Owner keep the lines of communication open.
I can not tell you who the Lender was but they were ready to offer this particular owner $2,500 if he’d participate in a Short Sale.
He just turned it down flat.!! Not interested.. Not motivated at all. Why…? Because, in his opinion, he had put so much money into the house that if he took the $2,500 from Wachovia he’d “lose money”. His rational was that he knows what the homes in his neighborhood are selling for and he wants a decent loan modification that lowers his payments and does not have negative amortization.
He also wants his loan amount lowered. If he doesn’t get it his way he’s prepared to go all the way to foreclosure but then take everything he’s put into the house with him. In short gutting it. He’s installed over $13,000 just in a patio cover, new granite counters and new kitchen cabinets, new appliances and a new bbq island in the back yard.
I think this is an indication of the “cynism” that is in the minds of many people, who for whatever reason, find themselves in this situation.
In this case the young man got divorced and the only way he could stay in his home was to ”refinance” into one of these loans that have been the subject of many a news article.
Just another story in a frustrating year of Short Sales and Foreclosures that are everywhere.
Make it a Great Day…!
Ed Favinger, Broker, CRS, GRI favinger@rwnetwork.com 916-203-1260
An interesting discussion that was started by a local Buyer wanting to avoid having to go through the hassle of a “mortgage application”
