Woodland Hills, CA (PRWEB) February 23, 2009
Eli Tene, CEO of I Short Sale, Inc., has issued the following open letter to officials of the new government. In it, he notes the failure of existing strategies to resolve the true estate crisis and explains why short sales would minimize losses and support preserve property costs. The text of his letter follows, an official list of recipients of letter accessible upon request:

An Open Letter to the New Government: Distressed Home owners Seek an Immediate Change

In the battle against the economic meltdown, the government provides a blank verify to banks while getting misinformed about what is really going on in this battlefield. Getting on the front line as CEO of I Short Sale, Inc., one particular of the largest private loss-mitigation advisory firms, I can testify that the circumstance is deteriorating rapidly.

Most banks’ modification programs merely dig a deeper hole for the genuine-estate market. The homeowner who had interest-only payments ends up paying interest and principal on the current balance, so his payment just goes larger. With no a balance reduction, the loan modification of these days is clearly the foreclosure of tomorrow.

The Brief-Sale Resolution
The very best answer to today’s crisis is in short sales, or promoting a home for significantly less than the mortgage balance. The positive aspects: 
1. Defending the homeowner’s dignity by avoiding the degrading eviction method.
two. Allowing for a fresh new start at an inexpensive expense to the homeowner.
three. Minimizing the damage to the homeowner’s FICO score, hence allowing for some breathing space in the existing credit crisis. 
4. Making tax revenue at the municipal and state levels.
5. Acquiring the genuine estate market moving, thereby delivering operate to millions of men and women dependent on this sector.
six. Maximizing recovery for the lender, receiving rid of undesirable paper and minimizing the losses incurred for the duration of the pricey foreclosure method.
7. Substantially slowing down the fast decline in residence rates by stopping foreclosures.

I 1st approached the banks to short sell properties 19 years ago. At that time, they have been not aware of the wonderful prospective of this tool. There have been hundreds of thousands of brief-sale negotiations considering that then but nonetheless loss-mitigation departments don’t see their possible.

I propose the following:

For modifications:
1. Force banks to commence modifying balances (extremely couple of do, and, if they do, it is just for non-performing unfavorable ARM loans). This need to apply to all loans, such as unfavorable amortization loans, fixed-price loans and investment properties.
two. Permit interest-only payments in modifications.
3. Enable tax forgiveness, which includes property owners that don’t fall below the owner-occupied category.

For quick sales:
1. Supply tax credits to home owners and investors who acquire quick sales.
2. Develop incentives to lenders who will encourage property owners and investors in default to short sell properties.
3. Develop a campaign to educate property owners with regards to their alternatives.
four. As with modifications, let tax forgiveness, such as house owners who don’t qualify in the owner-occupied category.

I sincerely believe that the government’s very first priority is to the American men and women. In order to make a substantial effect, nonetheless, the government need to pick a more direct and a lot more efficient approach than pouring taxpayer dollars into monetary institutions.

As we all know, this matter is urgent and every single day that goes by, the situation is obtaining worse. This is a request to meet with you as quickly as possible to present to you these tools in higher depth. Because I assume that you will be in Washington DC, I will be prepared to fly to Washington DC to meet with you there. I wholeheartedly believe that this will have a dramatic impact in helping the housing crisis.

Thank you,
Eli Tene
CEO, I Brief Sale, Inc.
Woodland Hills, California
eli (at) ishortsale (dot) com

I Brief Sale, Inc. (http://www.ishortsale.com) is a top nationwide short sale, modification and loss-mitigation advisory firm. Since 1991, it has assisted, by way of its principals, thousands of property owners to avoid foreclosure.

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