Is The FDIC Killing Short Sales?
IndyMac Bank (now OneWest Bank), is holding one of my clients hostage, demanding a $75k promissory note, or they will proceed to foreclosure.
February 09, 2010 | Tconsoli | Comments 2 | Filed Under: Daily • Foreclosure • Government • News • Wall Street • World
soccerdad | Feb 9, 2010 | Reply
Great article, eye opening. Still don’t fully understand how a bank benefits in a ‘short sale’. Anyone?
Allison S. | Feb 9, 2010 | Reply
soccerdad, I’m no expert but I’m a regular listener to Joe’s show. He’s explained that a short sale is when you sell a house for less than you owe and the bank agrees to accept the discounted payoff, meaning the bank accepts less money than is actually owed. Why? Cuz it’s better than foreclosure when they become responsible for that property and need to deal with it themselves. If anything happens to the house, the bank can lose their money. At least with a short sale, the bank gets their $$$.