Having Trouble Getting A Loan Modification Or Short Sale Approved? You May Want To Check This Out
My blog titled “Is FDIC Killing OneWest IndyMac Short Sales?” detailed a “short sale from hell” experience that I had with OneWest Bank in September/2009. It was recently brought back to life, so to speak. The blog discussed the shared loss agreement that is currently in place with the FDIC and OneWest Bank, and how I felt the agreement puts sellers at a distinct disadvantage when negotiating with lenders that have these agreements in place. Feel free to read my FDIC Onewest IndyMac blog. I would highly recommend reading it before continuing, so the rest of this story makes sense.
I can’t tell you how many phone calls/emails I’ve received since posting this blog. In the past 9 days, it has received over 13,000 views, so you can only imagine. The one question that I am constantly asked is, “How many other lenders have this deal in place?”, or “Does Lender XYZ have this agreement in place with the FDIC”? Unfortunately, until today, I didn’t have that information.
Robert Hackney, an attorney in Florida, was kind enough to forward a list of all lenders that have been shut down by the FDIC and re-sold to other banks and/or investors since 2008. The list came from Damien Paletta of the Wall Street Journal. Mr. Paletta’s article that goes along with this list is a real eye-opener. According to the FDIC, there have been 181 banks that fall into this category. The list also shows which banks have received loss share agreements to date.
A recently released article by Brian Bandell of the South Florida Business Journal titled “FDIC Policy Could Harm Economy” reported that there are now 94 separate shared loss agreements between the FDIC and various lenders, with expected losses of $122 Billion to the FDIC.
So, why do I post this blog in a Real Estate Forum, you may ask?
Again, I ask you to go back and read the FDIC OneWest IndyMac blog to understand my reasoning, but I will give you a quick answer. Why would a bank agree to a loan modification when a short sale or a foreclosure is more profitable to them than a loan modification? And, why would a bank agree to a short sale, when they get the same treatment from the FDIC when they simply foreclose? Again, rather than get into all of that here, please go back to the original blog to get a better explanation.
The main question all of us need to ask ourselves is, “When is enough, enough”? Our children and their children are going to have to pay for this financial mess we are in, and it’s time to finally start demanding answers from our leaders. This is no longer a Democrat vs. Republican issue. IT’S TIME TO STOP ASKING QUESTIONS, AND START DEMANDING ANSWERS!
Now, go take a look at the list of banks that have been shuttered by the FDIC since the beginning of 2008. If you look at the far right-hand column, you’ll be able to see which lenders have these “sweetheart deals” from the FDIC. You may be surprised at what you find! Good Luck, and keep spreading the word!
Summit Home Consultants
Copyright © By Bob Hertzog 2010 *Having Trouble Getting A Loan Modification or Short Sale Approved? You May Want To Check This Out!*