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Tanya Marchiol of Team Investments weighs in on the practice of bank short sales and the government’s efforts to aid homeowners.
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It's a dramatic development big banks have started paying some homeowners to just.
Do -- -- I'll pay him do it get out of the hope is that -- going through with a full closure get out of the home don't full close his -- check.
That's right -- giving them a big check just to walk away on a multi all with team investments -- the faintest idea this is what you do one for you like this country.
Well I think it's interesting and you have to understand the anatomy of a short sale it is the first place the bank wants to rid himself of this terrible asset.
Rate so they wanna get rid of this product that real estate agents like myself -- out -- soliciting these people to short -- we are telling the bank -- its work.
The bank isn't doing anything to get the short sell -- taking everything to the banks so it's cheap.
So let's not confuse things the banks are not in the business of being benevolent.
But the banks on now started to see their own self interest in writing a check and -- that don't -- closed just leave you got it that's exactly -- is so that's.
I'm from -- reducing the principal it's that's a totally different thing.
Yes this is a check -- you go your way out.
Because it's quicker for us and it cheaper for us to get you out and for you to go away.
Then it is for us to keep you on our bucks.
Here's a little statistic lenders on average spend 350 days and for closure and -- 175.
Days to sell the property a short sell on average 623.
-- -- And -- somebody that immediately occupy the property.
At the moment this is this just going on around the country are random basis vitamin -- and organized thing.
Now that's the problem I had an agent that just did one and it was because it was a portfolio backed low.
Not hate you know not Freddie Fannie not anything else they had the money they can make the decision -- -- it.
If I'm a regular guy I'm on the ward I'm thinking about walking away from the house of full closing.
It's thought it would be difficult for me to get -- checked out of the bank because not just an ordinary guy.
You have to stop paying for a long time as I understand in order to get this point you have to party missed a lot of payment and -- -- by British rock camp but it's efficient I mean it clears it off the market so much -- -- the only other option is that the house goes into foreclosure.
And then it sits there -- for a long time before that -- to -- this way you already have someone who wants to get off their hands that 25000 dollars or whatever their paying to get the person out is a drop in the bucket that's exactly right.
And this is happening more and judicial states.
Because it's -- I think it's exactly -- exact right because they have to go -- the court process sent.
But once again immediate at the bottom line here once again were rewarding people who -- you identify with their money.
Here's where I disagree I think that we have to content we have to get over all of this.
-- make financial decisions.
But the back when they get out of it -- it's -- good one they make it work Hilton we had -- -- -- allow homeowners are not supposed to make financial decisions we're supposed to sit.
Not be able to feed our families not be able to go home and rest in a home that is supposed to be how.
Not make a financial decision you already made about what about a went and did your finances living and getting -- -- let's -- she's ignoring moral hazard.
On the -- -- financed out of the efficiency and clear the market no metal -- clear the mom I'm all for that but the point is view here we go again.
If you get.
Something wrong with your finances you get a -- if you're -- big bank.
You get something under you that we are a normal person this -- I honestly I didn't call 811 refinery distributed we have to find the solution and the solution is one free enterprise because investors and first time homeowners are coming in and buying these things.
And that's the second thing is let's figure out a solution instead of arguing moral hazard or what's right it's not let's just -- -- when he.
Solution here helping the next door neighbor a little bit you can take some solace and act as the guy I brick store the house is clearing the market at a slightly higher price.
But if it went into foreclosure really bottomed out and was sitting there with weeds forever with -- at least how quiet -- this comes down to higher mortgage insurance is comes down to higher property -- and ultimately anybody who's been responsible is gonna pay for that -- and that's I think the tax break for the homeowner that has been a response -- -- -- -- class would do an excellent -- -- -- good.
But not everybody interesting debate thanks very much to be.
