Can you think of any reasons that banks need to stay out of the real estate business? How about one phrase- SHORT SALES!
Let's make a list of the reasons why in the comment section below until we have 101 reasons why to send to our Congress.
Just to think that the banking industry was lobbying to get into listing and selling real estate reminded me tonight of the Little Red Riding Hood with the wolf being the banks. They will be back again to try to get Congress to approve their wishes.
Just imagine for a moment what it would be like to have banks in the real estate business:
Mr I.Need To Sell walks into his local branch office where he has his bank account. There is the long line of customers waiting to make deposits and withdrawals. There is a stand with a take a number machine. He takes his number and stands in the lobby because there are only two seats and both are taken with other patrons. One of the persons sitting in the chair is there to refinance their home and the other person is waiting for a list of properties that she wanted to go see.
After about 1 hour of standing, similar to the post office experience, one of the tellers walks from behind the counter and calls out Mr I Need To Sell's number. She motions him to another section of the bank to a desk that has a computer facing her, not the consumer. She asks for his address and then she pulls up his house on Zillow. She then goes over to the printer and brings back a stack of papers about an inch thick full of all the bank's disclaimers and hold harmless agreements. After an hour of signing papers he has no clue of understanding she says that they will be using Google Earth's image of his house on the MLS. She tells him to drive around to the back of the bank to pick up the bank's For Sale sign and tells him to place it in his yard. She tells him to go buy a lock box from Home Depot and that the MLS will state that the buyers will call him directly to set up the showings.
The bank then discloses their commission is going to be 9% and they will only co broke with Realtors ® at 2.5 %. They will also be the title company with the highest fees in the area, the depository for the escrow deposits in non interest bearing accounts. The appraisal company is a subsidiary of the bank and the new buyer will have to use this bank for their loan. Not only that, for every day that the loan is delayed past the closing date on the contract, the buyer will have to pay a fee of $190 per day even if it is the bank's fault for the delay.
When Mr I Need To Sell calls the bank for feedback or questions regarding the progress or lack thereof he will be greeted by a telephone answering system that makes him go through a maze of options and then when he finally reaches the department he needs he is told that there are 32 customers ahead of him and the wait time is estimated to be at least 8 hours. If he decides to hold that long, right when it is his turn he will get disconnected because the bank closes at 4 p.m.
The day finally comes when Mr I Need To Sell gets an offer on this house. He takes the offer into the bank and is told that he will have to make an appointment and come back next week to review the offer. After that it will take at least another month to find the contract that the bank lost in their piles of files on a desk of the listing processor who gets paid $8.00 per hour to do the processing.
Based on the experience we all are having with the banks who can not even process a short sale package, who don't even know their own properties are being sold on the courthouse steps and who have no clue about the real world of real estate and without common decency or courtesies; if this is not a real reason to keep banks out of the real estate business I don't know what is.
It is not in the consumers interest to allow banks to list and sell real estate.
Contact Nestor Gasset and Katerina Gasset, CIPS, Realtors®, International Properties and Investments, Inc. Licensed Realtors® in Florida at 561-753-0135 to list your property for sale or to purchase a property in Wellington, Royal Palm Beach, Loxahatchee, Lake Worth, Hypoluxo Island, Lantana, West Palm Beach and the rest of Palm Beach County Florida and Port St Lucie Florida. We are accepting referrals.
Call us today at 561.753.0135 or Toll Free 800.444.3316. Contact us by email if you prefer by clicking on email me on the right side of this page under our profile.
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P.S. If you are listing your home as a short sale in Palm Beach County Florida and Port St Lucie Florida make sure you hire an agent who knows how to do short sales and has the experience to get the job done. We are doing successful short sale packages. Call us at 561-753-0135 to find out more about Palm Beach County Short Sales and Port St Lucie Short Sales.
Copyright © 2008 By Katerina Gasset, All Rights Reserved.*101 Reasons Banks Need To Stay Out Of Real Estate *
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