This story is crazy. MBA Mortgage Short Sales. or read it in the WSJ.

The Mortgage Banker Association has completed a short sale on their office building after owning it for a very short period of time....less than 2 years.

Not a big deal, other than the fact that they represent an industry that has made it very very very difficult for struggling homeowners to complete a short sale or do loan modifications.

Funny thing about all this:  the cheif executive of MBA, John Courson, was recently asked about owners walking away from homes or stopping payment after trying to do the right thing by reaching out to the mortgage bank via a loan modification or a short sale.  He responded with,  "What about the message they will send to their family and their kids and their friends?".

And now they just did a Short Sale which resulted in a nearly $30 million dollar deficiency.  Deficiency is the difference from the amount they owed and the amount the property sold closed for.  It gets better:  They also defaulted on a lease and owe more than $1million in that debacle.

I think they just sent the clear message:  they understand and fully agree that sometimes you need to sell while owing more than the property is worth.

Posted by Brad Officer on
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