“So, you’re telling me that unless I can get you the TPS form filled out, then you will reject this short sale and subject your company to a potential $17,000 loss,?”
“Yes, you are right”, she replied. “But $17,000 is a lot of money. Don’t you agree?”, he replied back. “I don’t care about the money. The TPS form is company procedure”, she said.
The story above illustrates just how crazy short sale lender bureaucracy is today. The guy who told me that story could not remember the form name.
He said it was about as dumb as the infamous “TPS Reports” from the movie Office Space. The reason is because many banks turn down short sales only to lose more money through a foreclosure.
As an example, the house in question sold for $197,000 about 12 months ago. Today, comparable homes are selling for $163,000 (not a typo.)
In that 12 months, the home’s value dropped by $34,000. The bank’s foreclosure process was on track to foreclose on the house in 6 months. It would have taken another 3-6 months to sell the foreclosed house.
That means the value would have dropped by a minimum of three quarters of $34,000. That mean the lender would have lost another $25,500 because they turned down the reasonable short sale offer.
Here is what was wrong with the TPS form. One form had “John Stevens” entered for the seller’s name. The short sale negotiator was going to reject the short sale unless his name was changed to “John W. Stevens.” Everyone else was perfectly ok with the existing paperwork. The title company, the buyer’s mortgage company, and everyone else. They were going to lose over $25,000 for a simple middle initial. That's simply crazy.
The bottom line: A large (nationally know) lender was willing to risk losing $20,000 because they needed a document to be perfect. Nobody ever asked the stockholders for their opinion.
That’s what short sale bureaucracy does. It hurts the economy. It is also why you need an experienced, competent short sale agent. You need someone who knows how to work with the bureaucracy and get things done.
Thinking about a short sale? I can help you short sale your property and never pay the bank another dime. Send me an e-mail at utahhomesaver@gmail.com. I will contact you for a free consultation. When we talk, I will explain how the process works in detail and answer any questions you may have. Or, if you prefer, you can call Dave at 801-651-0707.
Thinking about a loan modification? Our Utah Home Saver Loan Modification Kit has the instructions you will need to get a loan modification approved with your bank. This is a FREE for you, all you have to do is call or email us today.
Thank you for taking a few minutes of your busy day to read this, Dave Forsberg.
Dave is a Realtor with Prudential Utah Real Estate - Bountiful.
Phone: 801.651.0707 Email: utahhomesaver@gmail.com
Dave Forsberg and The Utah Home Saver Team specialize in helping Davis County, Utah Homeowners short sale and never pay the bank another dime. Bountiful Loan Modification Help, Bountiful Short Sales. Bountiful Short Sale Realtor. Bountiful Realtors. Bountiful Realty. Bountiful Realtor. North Salt Lake Short Sales. Woods Cross Short Sale Realtor. Centerville Short Sales. Farmington Short Sale Realtor. Fruit Heights Short Sales. Kaysville Short Sales Realtor. Layton Short Sales. Layton Short Sales Realtors. Syracuse Short Sales. Clearfield Short Sales Realtor. Davis County Utah Realtor. Stop Foreclosure. Stop Utah Foreclosure. Avoid Foreclosure. Avoid Utah Foreclosure. Foreclosure Alternatives. Utah Foreclosure Alternatives. Bountiful Homes for Sale. Bountiful Houses for Sale.utahhomesaver@gmail.com
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