What are your thoughts on Bankruptcy Judges handling the current Foreclosure crisis?
It's obvious that the servicers cannot keep up with the current demand of Short Sales and Foreclosures.
Just today, when calling for an update on the two Short Sale listings I currently have listed where IndyMac Bank is the mortgage holder, I was told that they receive at least 500 new Short Sales per day! The Short Sale package was sent to IndyMac Bank along with offers for each at the beginning of October.
Needless to say, time has NOT been of the essence for IndyMac Bank. Last week I was given email addresses for the negotiator but have heard nothing back from either one. This morning I was told that there is no other solution but to just wait until I receive an email from both negotiators. No phone number will be given out and no projected date was given when I might anticipate hearing anything.
It is obvious to all or at least it should be, that the servicers can not handle the load of all the homeowners in trouble with their mortgages.
Check out CNBC's video on Housing's New Fix and see where you stand.
My question is how in the world are the Bankruptcy Judges going to be able to handle the load? What do you think about a Judge reducing the mortgage through a Bankruptcy? Will we have a nation filing bankruptcy?
The loan modification program that some of the banks have instituted seems to be an act in futility. What the banks are finding is that those modifications that they have actually approved resulted in the homeowner simply delaying the inevitable and losing the house. It would seem that the loan modification programs were designed for failure.
As Realtors we know that time is of the essence with all Real Estate transactions.
What is your solution to this problem? With government stepping in, are we solving the problem or creating a new one? What is your take? Do you think the Bankruptcy Judges will be the cure all?