The focus of shortsalepower.com over the past couple days has been on how a variety of lenders are conducting short sales. We talked about OCWEN and how they desire to lose money instead of completing short sales. We also spoke about Bank of America and their effort to correct shortfalls in their short sale procedure. Today, we’d like to go back to the well and talk about another lender, ING.
We are presently working on a short sale with ING and have got some interesting news from them. First, they have acknowledged that the house owner in this particular short sale needs to sign a promissary note for the residual deficiency balance in order to complete the short sale. So, obviously, we resolved to escalate to the executives at ING. There answer was both mystifying and interesting.
Firstly, they declared that ING only deals directly with borrowers. That proclamation is obviously bogus because there is already a negotiator working with us on the short sale. Secondly, they declared that they will not discuss loan repayment terms with third parties. For a second time, this is bogus because they have already started negotiating with us. Thirdly, they state that short sales are not the right of house owners or their brokers. That is accurate, but this would lead us to deem that ING wants to be a house owner. As far as we know, the lender is in the trade of making money, not owning property.
This proposal was for 85% of the mortgage value which is a very considerable offer. Aren’t the banks intended to work in their best interest to mitigate loss?
The CEO of ING got involved and noted to us that they do not deal with intentional defaulters. Yet, the house owners in this situation are not strategic defaulters. At the end of the day, it doesn’t matter why the short sale is being executed. The bank must focus on mitigating loss.
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