Everett Real Estate May Never Recover
Ever wonder why loan Mods are so hard to get?
Wow, with sweetheart deals like this Everett real estate may never recover its value. If the value of homes for sale in Everett doesn’t recover then the entire economy will not recover any time soon.
Have you heard about the sweetheart deal the FDIC gave 1 West Bank? That is the bank George Soros owns. You know he’s the guy who bankrolls the Democratic Party. I well remember the old adage it’s who you know.
Well back in July of 2007 IndyMac Bank failed. 1 West Bank bought it in March of 2009. The FDIC gave 1 West a deal like you can’t believe.
1 West paid 70% of the value on all mortgages and 58% of the value of all HELOCs. The FDIC guaranteed 1 West 80-95% of all losses for 1 West.
Everett real estate is having a hard time recovering because of foreclosures and short sales. The value of home for sale in Everett is suffering because of the same reasons. Ever wonder why it is so hard to get a loan Mod? Well here is why.
This is an actual example of why the FDIC bureaucrats should be fired, every damn one of them.
A homeowner owes $478,000 and with lates fees and missed payments the total due 1 West is $485,200. 1 West paid (70% of the $478,000) $334,600 for this mortgage. The homeowner can’t get a loan mod because IndyMac and 1 West wouldn’t allow it. The homeowner gets an offer of $241,000 and 1 West approves the sale.
You take the original loan amount plus late fees and missed payments of $485,200 less the $241,000 and you get a loss on sale of $244,200. FDIC guaranteed 80% of the loss so they pay 1 West ($244,000 X .8) $195,360.
1 West got $241,000 (short sale) plus $195,360 (FDIC loss guarantee) = $436,360 for the house that they paid $334,600 for. So 1 West gets a profit of $101,760.00. To add insult to injury 1 West got the homeowner to sign a note of an additional $75,000. Multiply this over 1000’s of homes and you see why there is no incentive to do a loan modification for anyone. There is much more profit in a foreclosure or a short sale. Now you see why Everett real estate is having a hard time recovering. Now you see why the market for homes for sale in Everett is so soft.
Do you see why 1 West can sell any home for any price because they are guaranteed a profit on every home mortgage they bought? They have no risk what so ever on any mortgage. Now do you see why lenders make loan mods so hard to get. There is no incentive to make a loan mod and every incentive not to.
To top even that 1 West will only get these payments if the show a $2.5 Billion loss. So guess what, they don’t do loan mods because they will not get paid by the FDIC if they do.
I will leave you to figure out who is actually paying George Soros and 1 West to screw up the entire American economy.
Now you can see why Everett real estate may never recover. Now you know why the market for homes for sale in Everett is so soft.
Want to watch a video on this? http://www.thinkbigworksmall.com/mypage/player/tbws/23622/1017333
Jim Johnson and comments are always welcome.
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I think you are talented writer, keep us posting
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I find this information useful to my clients, there is a lot of grey area. Hopefully there will be more clairty sooner than later. When we develope our loan modification software, we aim to build into the flow conditions to help our clients be ahead of the curve. Keep writing and thanks for the great info.
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I’ve read so many horror stories of loan modification scams, etc. You should learn how to do it yourself.
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