My 1st Million At 33 – yes, you can do it too

I recently tried to look at a short-sell property. There is no lock-box at the property. It is by appointment-only. But the seller simply doesn’t return any phone calls. Nothing. You can’t get in at all.

The property has been on the market for 100+ days. It seemes that the sellers are simply trying to buy time to live inside the property. I wonder how much the bank is aware of the situation.

Well, come to think of it, banks probably want a longer short-sell & foreclosure process anyway. This way they don’t need to write down the losses immediately, and show a big red ink in their quarterly reporting. Banks are trying to buy time too. Unfortunately, the longer the process takes, the bigger the losses. Unless the wages of homeowners suddenly increase a lot through a hefty inflation, the same unaffordability exists before and after the foreclosure/short-selling. Nothing is going to change.

And loan modification will work only if the lenders are writing down the loan value. Otherwise, when the loans get sold back to Fannie Mae or Freddie Mac, taxpapers will foot the final bill.