Friend of Red Phoenix and Real Estate Expert Tim Murphy chats it up about loan modifications!
Stunning Fact!!
The Odds are Against You when trying to complete an Apple Valley, MN Loan Modification. Find Out Why.
Apple Valley, MN Loan Modifications – Shocking Fact: Most banks don’t own your mortgage. In fact, most major U.S. Banks only own approximately 20% of the loans they hold. Most U.S. banks are handling 80% of the countries mortgages as a servicer. The actual owner might be Fannie Mae, Freddie Mac, a Wall Street Trust, a large insurance company or a pension fund. A servicer acts as a trustee for the actual investor. They collect the payments and handle the “Lender” duties. Then they forward your mortgage payments to the investor of the loan each month.
The lenders get paid the same amount of money whether they do a good job or not. Are banks motivated to do a good job with your minnesota loan modification? Good question! Many people experience long waits trying to get their loan mods accepted. Hmmm I wonder why....
Let’s say you managed an office building. You only returned calls from prospective tenants one day during the week. The other days you went golfing. As a result, half of the units were vacant. Would you really be representing the investors best interest?
Would this Mn Investor miss out on tenants who could fill their vacancies and increase profits? Would the office building owner be unhappy? You bet they would. The same problem is happening with Minnesota loan modifications and Apple Valley Mn short sales. The lenders don’t have enough staff in place to handle loan mods and short sale applications. As a result, they are foreclosing on properties when they really should be reducing mortgage payments. Banks are not getting to local Apple Valley loan modification applications because they just don't have the resources.
Most people don’t realize this is happening. Here are a few examples of lenders breaching their fiduciary duty to their clients the investor.
Example #1: Turning down local Apple Valley Mn loan modifications that amortize at a higher value than what is netted on a short sale or foreclosure. Let me explain: A servicer/bank negotiates a loan modification with a borrower for a new monthly mortgage payment of $1,000. The borrower has a stable income and agrees to pay $1,000 a month for the next 30 years. $1,000 a month for 30 years, at a 6.5% interest rate will repay a $158,210 mortgage.
The servicer turns down the local Apple Valley Mn homeowner on their loan modification and forecloses. The house sells for $125,000 as an REO/Bank Owned Home and the servicer nets $115,000. Did their investor lose money? I think everyone would agree they did. Obviously there are other factors involved, but you can see from an actuarial basis the investor will do better by giving the local minnesota homeowner a loan modification.
Example #2: Not giving local Apple Valley Mn buyers an answer on their short sale offer within one week. Banks/Servicers should help their investors recoup as much money as possible from a short sales. To do this, servicers should order 3 BPOs (Broker Price Opinion) average the values and then list the property. They should drop the price 5% every 15 days. When a buyer steps up to the plate, that buyer should get an answer on their offer within 10 business days.
Example #3: Banks are Not listing Apple Valley Mn REO properties quickly enough. I have witnessed several examples of banks foreclosing on a house and taking 6 to 12 month before they actually list the home for sale. As an example, I have seen houses sit empty for over a year before being listed for sale. Say what you want, but waiting 5 months to list a property is ridiculous. If the mortgage holder had been a wealthy individual who lived in Apple Valley, Mn, do you think they would have listed the house a little quicker?
Thanks for reading this, Tim Murphy.
Tim is a local Apple Valley Mn real estate agent at Re/Max Results.
Phone: (612) 508-5389.
P.S. Please feel free to call or e-mail Tim at anytime for a FREE No Cost, No Obligation Consultation. Tim's goal is to help as many people as he can in 2010.
Get the tools you need for a successful loan modification by clicking here.
Discover how other sellers successfully did a short sale and request a free consultation by clicking here.
Thanks for reading this, Tim Murphy.
Tim is a local Minnesota real estate agent @ Re/Max Results.
Phone: (952) 223-0999.
P.S. Please feel free to call or e-mail me at anytime for a FREE No Cost, No Obligation Consultation. My goal is to help as many people as I can in 2011.
Get the tools you need for a successful loan modification by clicking here.
Discover how other sellers successfully did a short sale and request a free consultation by clicking here.
View my homes for sale at www.HomesMN.info.
Tim Murphy, MN & WI Licensed Realtor
Metropolitan Home Team
RE/MAX RESULTS
Phone: 952.223.0999
E-mail: TimMurphy@MetropolitanHomeTeam.com
Website: ForeclosureHelpMN.info
We specialize in loan modification assistance and short sales in Apple Valley Minnesota. Apple Valley Mn Loan Modification Help, Apple Valley Mn Loan Mod Help, Apple Valley Mn Loan Modifications, Apple Valley Mn Loan Mods, Apple Valley Mn Loan Mod, Apple Valley Mn Loan Modification. Apple Valley Minnesota Short Sales, Apple Valley Short Sale, Lakeville MN Short Sales, Lakeville Short Sale, Lakeville Short Sales.
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