patrick.net

This offer, coming from the bank, doesn't bother me. How banks choose to handle their business is between them and the customers. In fact, I think this is good news. If banks are getting this desperate to unload short sales before foreclosures happen this could be a very good year for home prices and my wife and I might actually be able to find a good deal on a home.

But what makes me furious is that the article goes on to say that she also qualifies for $3000 from a federal incentive program. Why do our tax dollars continue to flow to these people? She should be thrilled to have $200k of debt forgiven, without even considering the $30k coming her way from the bank to cover her moving expenses. But then to turn around and ask the gov' for a handout? It's outrageous.

We are in 'full on looting mode' at the federal level IMO. (end of empire, pre soviet style collapse). Of course they might hold it together 20 more years, who knows.

You see the $ the banks are giving away is from the taxpayers/printed. Thus we are seeing part of the 1T per year deficit here is the 33k this lady got on top of maxing out her HELOC by 200k free money she defaulted on.

Banks get to keep their profits and pass their losses to the taxpayers. Seems like these people who maxed out their HELOC and get 30K+ in their pockets to cover "moving expenses" kind of get the same deal. Welcome to socialism.

When JP Morgan is using other peoples money I guess they are not too concerned about giving it away. I'm sure our gov is giving them cash to make this happen. And, this way they can hide 80% of the foreclosure sales from the market and pretend there are less homes in default nationwide. Lying and hiding is the way the world turns today.

I think short sales are put on the market by someone looking to get rid of thier home. They contact a broker and get it listed. It does not mean the bank will accept it. This is what I really wish would change. Get approval for a specific price for your short sale before it can be listed. Prices are so low so others can bid it up. All those offers go to the lender who decides if they want to accept it. Much more complicated if it is sold with a bunch of other GSE's, but that is the gist of it. I would rather see REO's listed as the bank has set the price. Put 15-30 days on the list and if they get what they ask or above, sell it!