Realtors learning fine art of 'cash for keys'

Real Estate agents increasingly try to prevent scenes like this one. The National Association of Realtors reports that 21 percent of its members now hold special certifications to handle distressed property, up from 12 percent last year. Poland-Smith, for instance, says banks would call her for “broker price opinions” on various properties, a form of valuation that could be used for multiple purposes—including for a bank to estimate value in an eventual sale. Within a few years, banks began calling her to represent foreclosures. All the letters state that eviction is avoidable and money to move is available—if the occupants call her within a few weeks. In those cases, the lender must agree to accept the sale price. It’s a nice hunk of money for owners otherwise facing eventual foreclosure and a ruined credit profile, although it’s not an option for all sellers. According to RealtyTrac CEO James Saccacio, the typical foreclosed, bank-owned home sells for 40 percent below a comparable non-distressed property, while a short sale typically sells for 20 percent less. Capturing a home before it falls into foreclosure might make financial sense to lenders in some cases, he says. What would creat the greatest benefit to the American people if we stop paying the mortgage starting in November of this year. If everybody did this, you would force the banks to renegotiate your loan at the existing property value. If everybody did this, you would force the banks to renegotiate your loan at the existing property value. Since property values have fallen 40% your mortgage payment would drop 40% per month. You would still have the same home you have right now. For borrow and spend local politicians that would be like amputating their legs. One thing I can also think of fast is the insurance industry has slowly slipped a cash making machine into your house insurance premium. They make you pay on up to 1/2 the value of the property, house and land, for personal property. I told my agent I don't own anyPicasso's or Rembrandt's and don't have $10,000 pieces of jewelry around. He said that was all the computer would let him do. If you have a fire that destroyed the dwelling they would then ask for pictures ort receipts so would never pay you the full amount for loss of personal property they make you insure. What would creat the greatest benefit to the American people if we stop paying the mortgage starting in November of this year. If everybody did this, you would force the banks to renegotiate your loan at the existing property value. Since property values have fallen 40% your mortgage payment would drop 40% per month. You would still have the same home you have right now. I guarantee, I am going to live there and file appeals and put away as much cash as possible. The banks created this entitlement mentality with the bailouts and ruined america by doing no diligence on peoples ability to pay. I want to live there for 20+ months or more and go to the trough until there is nothing left. As far as your 'free money' drivel goes, it doesn't matter whether the house is occupied or not - if it is sold at a loss, the valuation of other homes in the neighborhood decrease - including yours. In reality, these people are doing you a favor by living in the house preventing the pipes from freezing, weeds from growing, and being ransacked by vandals. Real Estate Agents represents banks to stage and sell the foreclosured houses. You will get a very bad credits for a very long time. Your dream home has become nightmares and liabilities. The banks get what they want and the people who are in trouble are not thrown out in the streets by the cops in an embarrassing way and they get some money. So why don't they work with the home owners to restructure their mortgages. Because they make more money by wiping the loan off the books. It's kinda like selling toxic bundles to others (after standard and poors rated them a++) or selling them to the US as collateral. If you plan on purchasing a foreclosed house, you had better perform your due diligence and make absolutely certain that the selling bank had proper title before they foreclosed or you had better get some rock-solid title insurance from the selling bank. Realtors