Have lenders heard of the law of supply and demand? Can someone tell the lenders that as supply goes up, prices go down? We have a short sale that has been in the works for over 6 months now. In a 1/8th square mile area around this particular listing, there are 22 homes for sale. We've had eight offers on the property, all relatively similar, but still below list price. The lien holder did an appraisal, and surprise surprise, brought the appraisal in at 20K above list price (how I'm not quite sure). With all of the offers on the property, the loss mitigation department still refuses to take action. They will not approve the sale, and they won't reject any offer either...the silence is deafening.

While I understand that they want to minimize their losses, don't they understand the fact that if they foreclose, they will end up spending tens of thousands in legal and other fees, and still not get the price they are asking? They lose, the current owner loses, we as the listing agents lose, and the buyers lose.

The bank (who shall remain nameless but you see their "back-patting" ads during most commercial breaks) must want this home in their inventory...afterall, isn't that what they do? Take the offer, write off the loss, and move forward...otherwise it will be the lienholder that will be in trouble (oh...they already are!)