NLIC.org

Rick Said:

Is it legal for banks/mortgage lenders to sell a foreclosure for more than what's owed?($19,000)

We Answered:

This depends on what stage of foreclosure the property is in! If the home is up for auction, they can sell it for however high people will bid. Of course, auction is different from a short sale, which would occur on the time line BEFORE the property got to auction. Once a bank forecloses on your property, they want to get it off their hands as quickly as they can, because it is a liability to them, but there is nothing that says that they cannot sell for a profit. It is simply difficult for them to do so, because real estate investors are looking to these "motivated sellers" for low prices. The bank owns the house after a foreclosure... so think of it this way... if you had a mortgage on the home for $19,000 and you were up to date on the payments, but YOU wanted to sell the home for more than it was worth, could you? Of course you could, because you owned it. You would at least be asking for the fair market value!

Gabriel Said:

What do mortgage lenders look for in bank statements?

We Answered:

They look for how much money you have and how long you have had about that much money. Any large amount of "new" money would need an explanation.

Karen Said:

What specific legislation or executive policies forced banks and mortgage lenders?

We Answered:

I believe it was only their greed.

They found a free rope and hung themselves, a typical greedy rich reaction.