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[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] Much to do about nothing Posted by Tom on April 04, 2008 at 9:43 AM In Reply to: Re: COUNTRYWIDE NO LONGER ALLOWING SHORT SALES posted by Antonio on April 03, 2008 at 9:09 PM Only CW knows what their previous business model was, but I doubt if CW did many seconds where they weren't also the first. CW knew all the risk/reward factors in making all types of loans. The other unrecognized factor is that CW or any major lender/servicer only has X number of loss mitigators and short sales are always a long shot. They're probably wisely using their available resources and time to concentrate where their exposure is the highest, i.e. first liens. Institutional seconds (where the first is held by another party) don't often have enough equity to call the homeowners bluff by foreclosing. If there's considerable equity a homeowner will probably work out some other arrangement before foreclosure. An individual might do it, but it's usually because they can't admit they made a mistake loaning the money in the first place and aren't willing to cut their losses. Your first loss is your best loss. In the right scenario an investor might do it. An institution is not interested in reinstating or paying off the first, as they don't want to put up the cash or track making the monthly payments. It all sounds good in theory, but the reality is it's rarely seen. Lenders know this. Follow Ups: Re: Much to do about nothing Antonio 10:01 AM, 04/04/08 (2) Not as easy as you might think Tom 7:17 AM, 04/07/08 (0) Makes perfect sense to me. JK (the other JK) 11:10 AM, 04/04/08 (0) Post a Followup: Name : E-Mail : Subject : Comments: : Only CW knows what their previous business model was, but I doubt if CW did many seconds where they weren't also the first. CW knew all the risk/reward factors in making all types of loans. The other unrecognized factor is that CW or any major lender/servicer only has X number of loss mitigators and short sales are always a long shot. They're probably wisely using their available resources and time to concentrate where their exposure is the highest, i.e. first liens. : Institutional seconds (where the first is held by another party) don't often have enough equity to call the homeowners bluff by foreclosing. If there's considerable equity a homeowner will probably work out some other arrangement before foreclosure. An individual might do it, but it's usually because they can't admit they made a mistake loaning the money in the first place and aren't willing to cut their losses. Your first loss is your best loss. In the right scenario an investor might do it. An institution is not interested in reinstating or paying off the first, as they don't want to put up the cash or track making the monthly payments. It all sounds good in theory, but the reality is it's rarely seen. Lenders know this. [ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] WWWAdmin 2.0a © 1997 Matt Wright and DBasics Software Company, All Rights Reserved

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