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Why oh why Countrywide?

The perils of a Realtor in 2008 have already gotten off to a great start. In one of the many hats I wear as a Realtor is the hat of foreclosure specialist for Countrywide Home Loans. I do not fully understand why the bank does some of the things that they do. Case in point:

We have a property located in Modesto that is a 1500 square foot, 3 bedroom, 2 bath home built in the 1950's. It has original hard wood floors, new roof, new dual pane windows, but the kitchen and bathrooms are outdated. The piece de resistance is the home sits on over an acre in the city, very hard to find.

The bank lost their shirt of this foreclosure and I empathize with them, so when they said list it a $500,000, I did. Even though I told them the property was worth $380,000; that might seem like sticker shock to some, and a real bargain to others depending on where you live.

Every 2 weeks or so they lowered the price and lowered the price till last week we were at $399,000 and it had a chance to sell, we were about to get an offer sight unseen from Los Angeles when in their infinite wisdom they dropped the price to $317,900, which is a deal, the agent from Los Angeles rescinded their original offer and wrote a new one at $300,000.

One stressful weekend later we are sitting on 3 offers with more sure to come. They are giving this property away, and I for one just do not understand why Countrywide as a bank does this?

Posted by Nick Cameron on 01/07/2008 08:42 AM

Comments (8)

countrywide, reos, foreclosures, banks, prices

8 Comments on Why oh why Countrywide?

Is it possible that they benifitted from the higher price estimate in their "asset" valuations in their annual statement. Now that the new year is here they may benefit from almost any amount of "cash".

Countrywide foreclosures in my area often give preference to buyers who finance their purchase with, guess who? Countrywide. It's right in the listing.

01/07/2008 08:52 AM

by Lenn Harley, Homefinders.com, MD & VA Real Estate

Don't you wish they would have just listed it at $399,00 to start?

01/07/2008 08:53 AM

by Anona Large-Oak Ridge, TN Real Estate (Realty Executives Associates)

They know best if you don't believe me just ask them they always know the market better than we do and they know how to do business better than we do just ask them they will agree on that one point.

01/07/2008 09:03 AM

by Terry Westbrook ~ Realtor(R) Grand Rapids Mi Ada/Cascade Real Estate (Five Star Real Estate, LLC Grand Rapids , MI)

Who knows?? But, be glad that you are going to the closing table! It is their money, they can do whatever they want. However, it is too bad that they did not list at or below $399,000 from day one! But, do ANY Sellers listen to us?? :)

01/07/2008 01:01 PM

by Rick Tourgee - Provincetown and Cape Cod (Century 21 Shoreland)

Hi Nick, crazy stuff...Do you think it had anything to do with the buyout announcement that happened this morning? probably not...

01/11/2008 09:33 AM

by Christina ONeal ~ Tracy, California realtor (Keller Williams Realty)

Nick:

Maybe that is why they are in such trouble. This leads me to think about how inefficient many of the asset management programs are for lenders. Maybe if they hired and trained more people in their loss mitigation departments they wouldn't be caught in chasing the market down.

01/11/2008 10:32 PM

by Gayle Phillips (Keller Williams Realty)

Apparently banks/lenders, just like many sellers do not understand that "proper" pricing of a listing from the outset (not just when they start to feel desperate) is the key to successfully selling listings and maximizing the return. Initial "above-market" listing prices and then "fire sale" reductions only end up resulting in lower eventual sale prices.

01/12/2008 02:07 PM

by Steve Shatsky - Dallas Real Estate & Short Sale Specialist (Keller Williams-Dallas City Center)

Wow! Next time, they had better listen to you.

04/04/2008 04:50 PM

by Nathan Cook (Classic Realty/GMAC Real Estate)