I just read some wonderful news on an AR member's blog. Kelly Willey from Florida was just raving about how nice it was that Suntrust had a very streamlined system for Short Sales. Which got me to thinking. Why don't the banks react to the changing markets and fix their outdated procedures of dealing with Short Sales and Foreclosures? I mean the profess to not want to have all this real estate but, they continue to make it take months upon months to get the homes listed. Then even after that they take forever to accept offers. THEN there is the closing. I mean if they really don't want to be in the real estate business then turn those homes over. Come up with some creative financing products for investors that buy their foreclosures. Offer incentives to buyers that are owner occupants. The list can go on and on but, I guess the bottom line is THEY ARE THEIR OWN WORST ENEMY! They scream that they need money. Oh woe is me bail me out. But, they have alot of it! It is simply tied up in foreclosed homes that they are sitting on because they fail to take the capitalistic approach of it something is broke FIX IT! Just like water will always find a way so will a true capitalistic system. The survival of the fittest. If a bank or institution is to stupid to figure out a way to turn these assets into cash sooner then later they maybe deserve to fail.
I have often blogged on the aspect of the market not being down but, simply put DIFFERENT. The same logic applies here. They have the same amount of money it is just no longer liquid. So if you need the cash liquidate those assets you are holding onto. I compare some of these financial institutions to a homeowner of a high end home. He has had it for sale on the market for over a year. Priced too high and not willing to drop the listing price. He ends up getting foreclosed on because he did not bend or conform to the state of the market. Sorry but, he deserved it. You can always make back lost equity, you can rebuild from mistakes. But, crushing failure of bankruptcy and foreclosure is much harder to come back from. It can be done but, why go through it.
So hopefully some of our financial institutions are not asleep at the wheel and will realize it is better to work with the assets and money they already have and not go begging to Uncle Sam for our tax dollars.
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