The Funny Business of Loan Modification

As a Sacramento Realtor,  I’ve had the very good fortune of successfully negotiating short sales, helping home buyers get offers accepted in multiple offer situations, and listing and selling homes  that I thought I’d never get sold due to the home’s condition!  Recently, the worst horror story played out before my very eyes—the seller decided  10 days before close of escrow, they did not want to sell, and left my buyer in a lurch. The buyer had already paid for the appraisal, and the home inspection to the tune of $1000, and the loan was ready to go, except for paperwork! I eventually got that buyer into the house and got that transaction closed!

I’m not trying to toot my horn here, as much as I am going to underline this point: Realtors sell homes. We are experts (well, most of us), at navigating the Sacramento Real Estate market—with all its swells,  low tides, and even riptides. We are not experts at negotiating loan modifications.

Last night, I spoke with a gentleman who was short selling his home, to avoid foreclosure. His Realtor negotiated his loan mod, but the loan modification was not accepted.  Maybe the Realtor did a really good job and the lien holder was uncooperative. Maybe the Realtor didn’t do such a bang up job, because after all, if the loan modification doesn’t go through—voila—Mr. and Mrs. Home seller have a Realtor right there, who can help them with the short sale, and the Realtor has more business.

Yes, I am suggesting that the Realtor knew the loan mod might not go through, and was ready to list the short sale. No, I am not suggesting that the Realtor did a purposeful bad job with the Loan Modification negotiation—that would be unethical and could cost the Realtor his/her license.

But, I often wonder how Mr./Mrs. Realtor from Nowheresville in Southern California has a listing in Sacramento, California that is priced wrong, marketed poorly, and the Realtor does not return calls. A lot of times, the above scenario is the culprit.

For more on Loan Modification hoaxes, see this New York Times article:

http://www.nytimes.com/2013/01/13/realestate/mortgages-avoiding-loan-modification-hoaxes.html?ref=realestate&_r=1&

For Sacramento home sales, and purchases, short sales, foreclosure sales and getting questions answered, consult a local market Real Estate professional. I just might be a good choice for you!

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