Q: we have a spec in 2007 as the market dropped. We tried to do everything to get this sold recently and received an offer for sale by owner.
At first, our Bank agreed to change the loan into interest only loan to help with cash flow, but we didn't manage to cover these payments. Then our bank went out of business, another bank was captured. We approached our new companion with a short-sale offer, has agreed to pay most of the difference between the amount offered by the buyer the amount owed to the Bank by our use of retirement savings. But they refused to accept the offer due to their loss-sharing agreement with the Government. Now my husband has cancer in step 3, he is unable to work. All our cash reserves have been depleted to follow our payment.
We are in our 50s, fiscally responsible, and would always want to do the right thing. Foreclosure is not an option for us because of what it will do to our credit. We feel the Bank acted very irresponsibly loss-share agreement it works against the taxpayer, for the Bank. The Bank has no incentive to work with us. Do you have any suggestions, we have all encountered complaints?
A. read the letter and felt nauseous. It reminds us of a story was circulating in a year or two before showing that buyers of banks that went under were graph millions by taking over these banks failed.
They were not making money for their smart lending or result better skills in making loans, but a large portion of the guarantees made by the United States Government banks take over failed lenders. Worse still, the Bank's loan more money has been made. It doesn't really make sense to set the condition that the banks make billions of dollars with no risk, but it seems to go right with what you say.
In your situation, you can make the Bank all (or almost all) by a buyer to put most of the money owed on the loan while you pay the difference. Yet if the Bank forecloses on you get half that amount from the sale, the Bank may reveal more. How it works? Well, if your bank to purchase the loans on the books of the Bank on, say, 70 cents on the dollar, the Government has a formula to ensure the difference or a formula based on the difference, your bank might make more money taking the loss than it is done entirely by you.
If the balance of your loan you were $500,000 Shoppers offer: $ 50,000 plus $ 400,000 from the Bank to an amount that was owed. At this point, you would think that the Bank would be ecstatic to receive this loan off its books and fucking. But the Bank may get more money by taking the Government to pay them the difference. It is awful to think that the financial system really work that way, but strange things have occurred in rescuing the Bank.