I read this interesting blog post by Felix Santiago about What Lenders Won’t Tell You About Your Short Sale.  It’s a very interesting article.  Here are some highlights:

3) Lenders and investors make secret deals for billions of dollars every day behind your back! Many agents  want to see and believe that their real estate transaction is the only way the lender can move the property.   In fact, this is by no means the principal manner of unloading their inventory.  REO’s along with performing and non-performing notes account for the majority of their swaps.  However, those sales are never recorded in public records.  Most of them are sold for pennies on the dollar.

4) The housing crisis is NOWHERE NEAR A BOTTOM! The biggest reason for this is the tremendous amount of inventory.   I’m not simply talking about the inventory in the lender’s hands.   I’m talking about inventory yet to be taken back.   There are millions of homeowners living in their homes for free.   I  have clients going on 2 and 3 years without a mortgage payment.  The lenders and their investors are simply overwhelmed by this crisis and they would rather see someone in the property taking care of it.  Once they foreclose, they are responsible for all the bills on the house.  Only 30% of the lender inventory is even available for sale.  Nearly three times the current inventory is pending foreclosure. And unless everyone behind on their payments gets back to work and starts paying their mortgage, the crisis will not be going away any time soon.

Check out his entire article on Felix’s Blog and let me know here what you think about it.