The big banks made mistakes and received a bailout. They have the resources to lobby congress and the courts to have laws written to suit them.
But, what has the little guy received? Nothing. So we decided to put together a Homeowner's Bill of Rights. It's time we had Washington look at what we want, versus taking care of the big banks.
Considering that the big banks have way more rights than the little guy, here is what we think should be done to "level the playing field."
The Homeowner's Bill of Rights.
1. Stop The Loan Modification Insanity! The Right to an open and transparent loan modification process. Any homeowner that can no longer afford their mortgage payment, petitions their lender for a loan modification, and it turned down shall receive a written, coherent response from their lender detailing why they were denied and what they can do to be approved for a loan modification.
2. The right to get an answer to a voicemail or e-mail from a loan mod or short sale negotiator within one business day.
3. The right to obtain the rules and guidelines for the loan modification of short sale from the loan servicer. Most loans are owned or insured by someone other than the lender the homeowner mails their payment to. However, these front entities still make decisions contrary to the investor or insurer's guidelines.
As such, the loan servicer should send any and all guidelines regulating the loan modification and short sale process to the homeowner.
4. The right to deal with one person who will make the decision to approve or deny their loan modification or short sale. This person should be available to reach by phone or e-mail.
5. The right to attempt to negotiate a loan modification or short sale without fear. The homeowners have the right to have all foreclosure proceedings stopped when they are negotiating a loan modification or short sale.
Many lenders use an impending foreclosure sale date to force a higher payment from a homeowners attempting to secure a more affordable payment.
Many times the reason the sale date is so near is because the lender has dragged their feet on negotiating with the homeowner. Because they are under duress, many homeowners will agree to a payment they cannot afford.
Sure the loan mod negotiator at the bank gets a bonus. But, everyone loses when the homeowner re-defaults and the lender has to process a loan modification all over again.
6. The right to walk away from their upside down mortgage debt. We often see the lenders hold such a hard line on getting repaid everything they owe that they allow the collateral (the home that is mortgaged) decline in value even more than they ever would have received as repayment from the debtor.
7. Stop the Debt Collector Harassment! The right to tell any and all debt collectors to stop calling and never receive a phone call from then again. In addition, this would include debt collectors that know the person's phone number, but will call family members in an attempt to embarrass the debtor.
This is America people! Debtor's prison was abolished two centuries ago! It's time to update your activities to the Twenty-First Century!
8. The right to have their short sale handled competently. The short sale process with most lenders is seriously flawed. Because of this, we see short sale offers for 385k rejected, only to see the home sell for 230k after foreclosure. This hurts homeowners, the banks, the housing market, and the American Economy.
Is it fair to pursue a homeowner for a larger deficiency when it was the lender's decision to reject the short sale that caused the deficiency to be larger? I don't think so.
Because of that, the homeowner has the right to have their short sale handled as detailed below.
A. All deficiencies are forgiven. We often see the lenders hold such a hard line on getting repaid everything they owe that they allow the collateral (the home that is mortgaged) decline in value even more than they ever would have received as repayment from the debtor.
Making the infamous difficult short sale process simpler and more attractive to buyers would net the banks way more money than will ever be recouped chasing down sellers.
B. To have their short sale handled to process everything as smoothly and quickly as possible so the home sells for top dollar and the loan owner receives the most money possible.
C. The right to work with a competent, experienced agent who specializes in short sales.
D. The homeowner is given a written list of investors, mortgage insurance companies, etc. (with contact information) that need to be satisfied for the Short Sale to be approved.
E. An appraisal is ordered and then the home is listed for sale at that price. The price is dropped by 5% a month, or whatever that lender's standard price drop is for Bank Owned Properties.
F. Home buyers get an answer to their offer within 2 business days.
G. An appraisal is ordered and then the home is listed for sale at that price.
H. Allow short sale buyers 45-60 days to get their loan approved. Many lenders that have loan servicing departments that handle short sales. These departments demand that a home buyer close the transaction within 30 days of short sale approval.
However, these same companies have lending sides that cannot close a loan in less than 45-60 days. So essentially, they are demanding that other banks close loans in 30 days, when they themselves cannot do the same thing. I would call that serious hypocrisy! Don't you agree?
Thinking about a short sale? I can help you short sale your property and never pay the bank another penny. Send me an e-mail at bion@bionsellshomes.com. I will contact you for a free consultation.
When we talk, I will explain how the process works in detail. If you prefer, then you can call me at 770-875-4268.
Discover how other sellers successfully completed a short sale and request a free consultation by clicking here.
Thinking about a loan modification? Our Powder Springs Loan Modification Kit has the instructions you will need to get a loan modification approved with your lender. Click here to request a copy.
Thanks for reading this, Bion Grady.
Bion is a Real Estate Agent at Maximum One Realty Greater Atlanta.
Phone: 770-875-4268. bion@bionsellshomes.com.
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Bion Grady specializes in loan modification assistance and short sales in Powder Springs Georgia. Powder Springs Loan Modification Help, Powder Springs Short Sales. Powder Springs Short Sale Realtor Short Sale Realtor. Powder Springs GA Short Sales. Powder Springs Realtor.
Copyright 2010 SFI Marketing Institute, LLC. All Rights Reserved. This is not intended as legal, technical, or tax advice. Please speak with a licensed professional before making any decision. Information is deemed reliable but not guaranteed as of the date of writing. The views expressed here are Bion Grady's personal views and do not reflect the views of Maximum One Realty Greater Atlanta. This information on The Homeowner's Bill of Rights is provided as a courtesy to our viewers to help them make informed decisions.
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