short sale tale

[XBoxBoy]

[quote=blew_it]I assumed they would do the rational thing (eat their share of the loss and avoid the costs of foreclosing since they can’t pursue a deficiency judgment in California) and they didn’t. I’m not sure of the reason for this.[/quote]

I think what everyone is missing here is that you are not dealing with a bank, but with a person who works for the bank. Yes, a short sale might be in the banks best interest, but is it in the best interest of that person processing the paper work?

Here’s a similar story. Years ago I was in a motorcycle accident. Long story short: A guy talking on a cell phone ran a red light and broadsided me. I was injured but fortunately not badly. My bike was totaled. All I wanted was to be paid for the motorcycle. I had health insurance so my medical bills were covered. I naively thought I could deal with the whole thing by myself. I didn’t want money for pain and suffering or any such thing. Just pay me for my motorcycle and I’d be happy. I was floored by the treatment the insurance adjuster gave me. He didn’t want to pay for the bike, he didn’t return calls, he did everything he could to encourage me to go get a lawyer. After a week or two of this, I did just that.

When I talked to my lawyer he explained that at this point the insurance adjuster was happy. The case had now been taken from him and given to the legal department. Thus, the insurance adjuster had less work to do, and could report to his boss that he had dutifully done his job on the case. But the bottom line is that after I lawyered up, the insurance company had to pay a whole lot more (and I do mean a whole lot more) in settlement fees.

I would guess that the person who handles the short sales is in the same boat. They mostly want to get the case off their desk. The interests of the bank, or the investors is not their primary concern, if even much of a concern at all. It was much easier (and probably in their best interests) to just stamp DENIED on your file and go for a coffee break.

Bottom line here is that businesses are just groups of people. Businesses don’t have interests really, only people in the business have interests.

XBoxBoy

[Anonymous]

XBoxBoy’s comment raises another possibility: perhaps the bank is concerned about appearances. The analogy to an insurance company is an apt one, in this case.

Think about the days of olde, when insurance companies thought rationally about their bottom line when it came to insurance claims. If it costs more to go to court than to settle, why not save some money and settle? What happened ultimately, as my lawyer told me, is that this pragmatic strategy backfired. People started getting into accidents on purpose just so they could collect a settlement. As a result, many insurance companies go the whole nine yards, regardless of whether it makes financial sense, when they feel they are justified for doing so.

In your case, the bank clearly feels like they can make an example of out of you. In being rational and honest, you gave them the perfect opportunity to turn you down. They’re probably hoping that you’ll go spread the word amongst other rationally-minded individuals who may be in similar situations.

*gasp*

You’re a mole! An unwitting carrier of disease!!

[Anonymous]

XBoxBoy’s comment raises another possibility: perhaps the bank is concerned about appearances. The analogy to an insurance company is an apt one, in this case.

Think about the days of olde, when insurance companies thought rationally about their bottom line when it came to insurance claims. If it costs more to go to court than to settle, why not save some money and settle? What happened ultimately, as my lawyer told me, is that this pragmatic strategy backfired. People started getting into accidents on purpose just so they could collect a settlement. As a result, many insurance companies go the whole nine yards, regardless of whether it makes financial sense, when they feel they are justified for doing so.

In your case, the bank clearly feels like they can make an example of out of you. In being rational and honest, you gave them the perfect opportunity to turn you down. They’re probably hoping that you’ll go spread the word amongst other rationally-minded individuals who may be in similar situations.

*gasp*

You’re a mole! An unwitting carrier of disease!!

[Anonymous]

XBoxBoy’s comment raises another possibility: perhaps the bank is concerned about appearances. The analogy to an insurance company is an apt one, in this case.

Think about the days of olde, when insurance companies thought rationally about their bottom line when it came to insurance claims. If it costs more to go to court than to settle, why not save some money and settle? What happened ultimately, as my lawyer told me, is that this pragmatic strategy backfired. People started getting into accidents on purpose just so they could collect a settlement. As a result, many insurance companies go the whole nine yards, regardless of whether it makes financial sense, when they feel they are justified for doing so.

In your case, the bank clearly feels like they can make an example of out of you. In being rational and honest, you gave them the perfect opportunity to turn you down. They’re probably hoping that you’ll go spread the word amongst other rationally-minded individuals who may be in similar situations.

*gasp*

You’re a mole! An unwitting carrier of disease!!

[Anonymous]

XBoxBoy’s comment raises another possibility: perhaps the bank is concerned about appearances. The analogy to an insurance company is an apt one, in this case.

Think about the days of olde, when insurance companies thought rationally about their bottom line when it came to insurance claims. If it costs more to go to court than to settle, why not save some money and settle? What happened ultimately, as my lawyer told me, is that this pragmatic strategy backfired. People started getting into accidents on purpose just so they could collect a settlement. As a result, many insurance companies go the whole nine yards, regardless of whether it makes financial sense, when they feel they are justified for doing so.

In your case, the bank clearly feels like they can make an example of out of you. In being rational and honest, you gave them the perfect opportunity to turn you down. They’re probably hoping that you’ll go spread the word amongst other rationally-minded individuals who may be in similar situations.

*gasp*

You’re a mole! An unwitting carrier of disease!!

[Anonymous]

XBoxBoy’s comment raises another possibility: perhaps the bank is concerned about appearances. The analogy to an insurance company is an apt one, in this case.

Think about the days of olde, when insurance companies thought rationally about their bottom line when it came to insurance claims. If it costs more to go to court than to settle, why not save some money and settle? What happened ultimately, as my lawyer told me, is that this pragmatic strategy backfired. People started getting into accidents on purpose just so they could collect a settlement. As a result, many insurance companies go the whole nine yards, regardless of whether it makes financial sense, when they feel they are justified for doing so.

In your case, the bank clearly feels like they can make an example of out of you. In being rational and honest, you gave them the perfect opportunity to turn you down. They’re probably hoping that you’ll go spread the word amongst other rationally-minded individuals who may be in similar situations.

*gasp*

You’re a mole! An unwitting carrier of disease!!

[UCGal]

[quote=blew_it]UCGal: This is a financial decision. If I held out to the end of my ARM (another 2.5 years) I don’t think values would go up enough to enable me to refinance. I think I will have job trouble in the future and am just taking the hit now.
[/quote]

As long as you are willing to take the consequences (credit hit from a forclosure), it sounds like you’ve thought things through. You are in a better position than many since you have a non-recourse loan.

As I said before – I’m not surprised the bank didn’t act in their own best interest. Long term views have gone out the window, it’s all about short term views. Xboxboy makes a good point – the person who got your file might not have any incentive to work with you – and it will be more work if they do.

Good luck going forward.

[UCGal]

[quote=blew_it]UCGal: This is a financial decision. If I held out to the end of my ARM (another 2.5 years) I don’t think values would go up enough to enable me to refinance. I think I will have job trouble in the future and am just taking the hit now.
[/quote]

As long as you are willing to take the consequences (credit hit from a forclosure), it sounds like you’ve thought things through. You are in a better position than many since you have a non-recourse loan.

As I said before – I’m not surprised the bank didn’t act in their own best interest. Long term views have gone out the window, it’s all about short term views. Xboxboy makes a good point – the person who got your file might not have any incentive to work with you – and it will be more work if they do.

Good luck going forward.

[UCGal]

[quote=blew_it]UCGal: This is a financial decision. If I held out to the end of my ARM (another 2.5 years) I don’t think values would go up enough to enable me to refinance. I think I will have job trouble in the future and am just taking the hit now.
[/quote]

As long as you are willing to take the consequences (credit hit from a forclosure), it sounds like you’ve thought things through. You are in a better position than many since you have a non-recourse loan.

As I said before – I’m not surprised the bank didn’t act in their own best interest. Long term views have gone out the window, it’s all about short term views. Xboxboy makes a good point – the person who got your file might not have any incentive to work with you – and it will be more work if they do.

Good luck going forward.

[UCGal]

[quote=blew_it]UCGal: This is a financial decision. If I held out to the end of my ARM (another 2.5 years) I don’t think values would go up enough to enable me to refinance. I think I will have job trouble in the future and am just taking the hit now.
[/quote]

As long as you are willing to take the consequences (credit hit from a forclosure), it sounds like you’ve thought things through. You are in a better position than many since you have a non-recourse loan.

As I said before – I’m not surprised the bank didn’t act in their own best interest. Long term views have gone out the window, it’s all about short term views. Xboxboy makes a good point – the person who got your file might not have any incentive to work with you – and it will be more work if they do.

Good luck going forward.

[UCGal]

[quote=blew_it]UCGal: This is a financial decision. If I held out to the end of my ARM (another 2.5 years) I don’t think values would go up enough to enable me to refinance. I think I will have job trouble in the future and am just taking the hit now.
[/quote]

As long as you are willing to take the consequences (credit hit from a forclosure), it sounds like you’ve thought things through. You are in a better position than many since you have a non-recourse loan.

As I said before – I’m not surprised the bank didn’t act in their own best interest. Long term views have gone out the window, it’s all about short term views. Xboxboy makes a good point – the person who got your file might not have any incentive to work with you – and it will be more work if they do.

Good luck going forward.

[DWCAP]

I think Xbox is onto something. The banks already tell everyone who will listen that they are overwhelmed and dont have the staff inplace to do all that the GOV wants.

Well, denying you, even at the injury of the company’s balance sheet, lessened the workload at the overworked servicers/modifing dept. This allows them to pass your file on, and work on the cases that may gain them some political traction. If they work with the people the bleeding hearts in congress are hearing from, they get less flack from congress and less political pressure. Congress doesnt care about you, they only care about the people who CANT afford to stay in the home but want to. (Those are the people who are complaining.)

Maybe in some sick way they are acting in the best interest of the bank, just in its political interest and not its financial one. Considering that the GOV owns alot of alot of different companies ( I think Chase got out from under their thumb a few weeks ago) it certainly is a good thing for the company to remain in political good graces. Besides they can always get more money from Unky Ben and the FED if they run out. I am sure he will take your soon to be foreclosed loan as good face value collateral.

[DWCAP]

I think Xbox is onto something. The banks already tell everyone who will listen that they are overwhelmed and dont have the staff inplace to do all that the GOV wants.

Well, denying you, even at the injury of the company’s balance sheet, lessened the workload at the overworked servicers/modifing dept. This allows them to pass your file on, and work on the cases that may gain them some political traction. If they work with the people the bleeding hearts in congress are hearing from, they get less flack from congress and less political pressure. Congress doesnt care about you, they only care about the people who CANT afford to stay in the home but want to. (Those are the people who are complaining.)

Maybe in some sick way they are acting in the best interest of the bank, just in its political interest and not its financial one. Considering that the GOV owns alot of alot of different companies ( I think Chase got out from under their thumb a few weeks ago) it certainly is a good thing for the company to remain in political good graces. Besides they can always get more money from Unky Ben and the FED if they run out. I am sure he will take your soon to be foreclosed loan as good face value collateral.

[DWCAP]

I think Xbox is onto something. The banks already tell everyone who will listen that they are overwhelmed and dont have the staff inplace to do all that the GOV wants.

Well, denying you, even at the injury of the company’s balance sheet, lessened the workload at the overworked servicers/modifing dept. This allows them to pass your file on, and work on the cases that may gain them some political traction. If they work with the people the bleeding hearts in congress are hearing from, they get less flack from congress and less political pressure. Congress doesnt care about you, they only care about the people who CANT afford to stay in the home but want to. (Those are the people who are complaining.)

Maybe in some sick way they are acting in the best interest of the bank, just in its political interest and not its financial one. Considering that the GOV owns alot of alot of different companies ( I think Chase got out from under their thumb a few weeks ago) it certainly is a good thing for the company to remain in political good graces. Besides they can always get more money from Unky Ben and the FED if they run out. I am sure he will take your soon to be foreclosed loan as good face value collateral.

[DWCAP]

I think Xbox is onto something. The banks already tell everyone who will listen that they are overwhelmed and dont have the staff inplace to do all that the GOV wants.

Well, denying you, even at the injury of the company’s balance sheet, lessened the workload at the overworked servicers/modifing dept. This allows them to pass your file on, and work on the cases that may gain them some political traction. If they work with the people the bleeding hearts in congress are hearing from, they get less flack from congress and less political pressure. Congress doesnt care about you, they only care about the people who CANT afford to stay in the home but want to. (Those are the people who are complaining.)

Maybe in some sick way they are acting in the best interest of the bank, just in its political interest and not its financial one. Considering that the GOV owns alot of alot of different companies ( I think Chase got out from under their thumb a few weeks ago) it certainly is a good thing for the company to remain in political good graces. Besides they can always get more money from Unky Ben and the FED if they run out. I am sure he will take your soon to be foreclosed loan as good face value collateral.

[Author]

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