We have all heard a story by now about someone getting paid to Short Sale their home. I’ve seen checks for as much as $30,000 written by CHASE to a Homeowner who was doing a Short Sale on their San Diego home. Keep in mind, this is a Homeowner selling their home for less than the amount owed and the Bank is taking the loss. So, why would the Bank pay the Homeowner so they can then take a loss?
Today, we discovered the answer. You see, the Bank must keep the original paperwork when they execute a loan. If they don’t, then they can’t prove ownership and therefore can not foreclose. So, if a Bank cannot locate the original paperwork for a loan they supposedly own, then it’s to their direct benefit to get that Homeowner out and get title transferred immediately through a new transaction. If that Homeowner is up-side-down, which many are, then a Short Sale it is…with a cherry on top 🙂
Many Banks have programs like this, especially the ones who have acquired or bought mortgages from other Banks. The 3 big ones on the list, as we learned today from our in-studio expert, Countrywide (now owned by Bank of America), Wachovia (now owned by CHASE) and Washington Mutual (now owned by CHASE).
Couple of things you can do…
#1 – Request the original note from your bank. They should be able to provide you with at least a copy. If they cannot, then you are really in the drivers seat. In fact, you could live in the house for the rest of your life without making a payment because they could never foreclose. They would report you late each month, so your credit would stink, but hey…paid off house.
#2 – Contact our Bank Negotiator, Bekah Stone, and have her look into your specific Bank to see what they’re offering. 1.888.888.0154
Other topics covered today:
– How we are using the Homeowner Bill of Rights to get the Banks to help Consumers
– The difference between the big Banks and Credit Unions. How they treat you when there is no profit in the equation.
– The truth about the Sequester. I have an insider who told ALL!
Categories: Credit Score Secrets