Shortsale slow down: It depends on what they ate at lunch, beef or fish?

Real Estate Weekly: Lots of short sales, but they are taking a lot longer to get done "MarketWatch e-Newsletter" reports@marketwatchmail.com

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Well, did I say so long time ago?

As long as Obama and Gaithner keep saying they are going to buy bank's toxic notes, there is no incentive for a banker to speed up REO sales, let alone short sale. In the past week, I have observed that in some area there is no new REO listing. If there are new listings, the price is going north.

Some banker friends told me that there has been a rumor. They said Gaithner proposed to buy those notes at 70% discount. What do you think? My answer to them is use your brain to say "no such luck" as Keynes said to a crowd of reporters.

Bankers upbeat after DC meet, still want to repay TARP

By MarketWatch
Last Update: 4:07 PM ET Mar 27, 2009

WASHINGTON (MarketWatch) - Top banking CEOs emerged from a Friday meeting at the White House with President Obama saying that they are on board with the administration to do whatever they can to get the economy back on track, but that they remain anxious to pay back government investments in their firm's and end their direct ties with Washington.

Chief Executive Jamie Dimon told CNBC Friday that J.P. Morgan Chase & Co. is looking for guidance from the Treasury Department about when to repay money the bank got last year from the Troubled Asset Relief Program. He also noted that Wall Street compensation practices "went too far" and that banks made a lot of mistakes in this area.

Dimon and chief executives of several other top U.S. banks made the pilgrimage to Washington Friday for a noontime meeting with President Barack Obama to discuss ongoing risks to the financial system and a new regulatory framework.

Don't take a reporter's writing at its face value. Why those bankers went to see Obama? What they are trying to accomplish?

We as VSP have no chance as those VIP to sit in at the dinner party at White house so that we don't know what they ate. But we have a nose to smell the air to figure out what they exactly ate: a prime rib, fish or lobster, right?

We are not stupid; and we will see what comes out very soon: to insure their note position or to benefit the whole economy.

Posted by Ed Tse on 03/27/2009 05:44 PM

Comments (4)

Shortsale in the ActiveRain Channel

economcy, short sale, reo sale

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4 Comments on Shortsale slow down: It depends on what they ate at lunch, beef or fish?

MAR

We quit doing Short sales and our business is great. It takes to long and is not usually good for a buyer.

I agree with you. But it is a dirty job, someone has to do it to help a seller in need. It is not easy, but still a profitable job to some degree. It depends on the situation faced.

A shortsale is a long process and there are so many factors out of agent's control. Even I am proud of my patience to help about 30 sellers when I was capital poor, I am no longer doing that.

Usually it used to take about 4 months to 6 months to complete a shortsale transaction back then. I have to cut commission to 2.5%. Still not too bad compared to a normal one. I have no clue how long it will take now. From my experience in 1990', the longest shortsale took 2 years to complete. But, that is simply no body making me an offer, not due to a banker's inaction or lack of incentive. No offer, no deal. Don't even mention about short sale.

(NOTE: in fact, I totally give up working as a commission-based agent after I made some money to be investment-oriented. I understand some agents have the pressure to bring home bread. They have to play the game in a hope as we have to pledge our "hope" to Obama now. Wish someday all agents don't have to do shortsale at the hands of bankers.)

I hate to see some listings by our fellow agents with those words: "the short sale is approved by lenders." That's cheating! Okay, let me be polite. It is a misleading, period. No approval can be obtained by an agent without an offer made and submitted to a lender. That is the truth.

I am doing my deals working with real estate agents. They represent me and make the offer from day one using an option contract. Then they list the property for sale to find an end buyer. This allows us to state we have an approval once we really do, and that helps us sell them faster. For more information on the program and coaching I am using Short Sale Riches

MAR

I agree with you on many fronts. Our short sale business is also going great. We can get approvals from lenders in as few as 3 weeks. But some transactions do seem to take forever, and some banks seem to have poor systems in place.

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