Most of you know I have
been trained by and continue to receive personal coaching from Lee Honish,
former Chief Loss Mitigator and Asset Manager for the HELOC division at Indy
Mac Bank and founder of CDAT – Certified Distress Advocate Trained. As a former
Bank insider Lee Honish shared this information with us this week -The facts
are 99% of Loan Modifications Transfer Title...What does that mean?
The basic reality that
needs to be understood by both homeowner and agent is that when ANY paperwork
is worked on or for a West Sacramento Loan Modification there is a 99% chance
that there will either be a West Sacramento short sale or a foreclosure.
Why? Simple, excluding
the 1% that hit the lottery and the West Sacramento homeowner gets a full
rewrite or recast or even possibly an equity reduction on their existing loan
terms, the reality is that they won't!
It is just basic math.
If 99% of West Sacramento loan modifications do not convert to full new loans,
why then do the banks keep pushing for them, why do agents help West Sacramento homeowners and why do
homeowners want them?
Banks want information,
Agents want to help homeowners and homeowners want to stay in their homes.
Here are the possible
outcomes:
1. 2, 5 or 10 year
adjustment of terms and rate. This is the best case scenario when requesting a
new West Sacramento loan modification. The horrifying reality is this; even if
the homeowner makes every single payment they will eventually hit the end of
the terms. 99% of these loans will not modify for a second time and all the West Sacramento homeowner has actually done
is delay the inevitable sale of their home. To qualify for the longer term
adjustment depends on the original loan. Basically the better the original loan
the better the offer on the West Sacramento loan modification. A West
Sacramento loan modification will always meet an end to its terms. Further it
will correct the delinquent payments on their credit and in most cases becomes
a short term fix for a long term problem need a very real solution
2. West Sacramento Trial
loan modifications. There is a possibility of a trial loan modification
becoming a short term loan modification. However the stats on homeowner not
making payments even on trial loan modifications is staggering. The reality is
simply this, if a homeowner gets a trial loan modification there is a 90%
chance that the loan will go back in default (missed payment).
So the current market
has created the band aid effect to get us through an election period and hopes
that the economy and employment will magically all turn around.
Homeowners are trying
hail marry passes to get to stay in their home and the banks/government are
freezing the sale of REOs in an attempt to inflate home prices.
As a former Bank
insider, Lee Honish still teaches, preaches and pushes this basic thought:
Write it off, take the loss and move on! It’s what the banks all want...
Is A West Sacramento Short Sale Right for Me? To
get a better idea of when your West Sacramento home will be
worth what you owe, log in to www.shortsaleandloanmod.info for
a free estimate or call me today for a free no obligation consultation or for the latest West Sacramento short sale information.
Call me today and sleep better tonight; you’ll be glad you did
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