Banks are Facing a Serious Dent in Earnings: Good News for You

Thanks to the federal government’s good intentions, short sale experts everywhere could find their negotiations going a bit more smoothly in the next couple months. At the very least, you should be able to get someone to answer the phone.

Thanks to programs like HAMP (Home Affordable Modification Program) and HAFA (Home Affordable Foreclosure Alternative), banks are about to be compelled to “eat” a great deal of their outstanding debts. Under these programs – which are presently designed to run indefinitely, even though they are functioning at a huge loss and, according to most experts, are simply stalling the inevitable, banks may be compelled to offer homeowners who cannot or do not meet loan modification requirements a short sale option – and forgive much of the outstanding debt based on government-determined criteria that is arguably idealistic and naïve at best.

Why is this good news for private investors? All of a sudden, you represent a far superior short sale option to lenders than you probably did in the past. After all, when you negotiate a short sale, that is exactly what happens: you and the lender negotiate to establish a price that both of you can live with. If the negotiations fail, the lender keeps the property and you leave. Under these new federal programs, however, there are no negotiations. If homeowners meet certain criteria – or, more like it, fail to meet them – then the lender must offer a short sale. Period. And the federal program – not the lender – will determine if the terms of this sale are acceptable. As you can probably imagine, if the lender and the federal government cannot reach an agreement, then there is no walking away. The lender will simply end up on the bottom of that argument and end up having to deal with the terms and conditions determined to be acceptable by the program in question.

Suddenly real estate investors aren’t looking so bad to lenders who are facing, according to most experts, several more years of foreclosures before the market evens out. So although many people are starting to think about getting out of the short sale market to avoid “competing” with the government, federal involvement cannot help but make you look more appealing to lenders everywhere. So if you have been thinking about moving on out of short sales, think again. New federal rules could have banks jumping to answer your calls.

P.S. If you haven’t signed up for my Free Short Sale Course yet, then youare really missing out, go here:
http://www.freeshortsalecourse.com/