Flooding The Market - Short Sales and Foreclosures

Think of all the contracts on Short Sales and Foreclosures that are waiting on the BANK to accept or close. Just think... if we could actually get an answer... How much Inventory would be Cleared out!!!

We agents keep writing offers - we need the bureaucracy to GET THEM ACCEPTED. Then the capital bound up in these offers (that do not get accepted) would be free to buy up other properties and clear out even more Inventory.

The government wants the Inventory cleared. There is confusion on my part why the Banks can not clear them out. Is there a shortage of employees? I have been thinking how expensive this process must be for the Banks and they do not Make any Money on it - it is not a profit center!

The up side is that the sooner we get these cleared out the sooner prices go up and investment capital is freed up to buy more properties.

Ask a Realtor to find out what the problems are  - we have our hand on the pulse.

Sounds just like my market down here in Southeast Florida.  It's alarming. Like Bette Davis said in an old film:  "It's going to be a bumpy ride."

It is worse here in Arizona--- a bumpy ride for sure.

It drives me crazy clients ASSUME if you place a contract you receive a response like a normal seller.... it does not happen that way

Welcome to  RE 2009 .... maybe 2010 and 2011 and 2012. OMG. I attended an REO class today. YES someone makes money on these REO sales. The banks ( that service these listings ) get a commission on every sale fro the investor when they liquidate the asset and if these are handled by an outside Management company they get bonuses on top of their fees for clearing up the inventory.

However most asset managers give these listings to agent they already know in fear that someone they don't know might not be able to sell them and then their bonus is not coming

This seems so true. I just read a piece of news today from our local association that most transactions are either short sales or foreclosures. -----huiting,

Nate, yes there will be more short sales and foreclosures.  Until the market re-adjusts.  I've been through this cycle before, it will be great when the home values drop because more people will be able to live within their means.  But the process of getting there... is a little ugly!

Thanks for posting to http://activerain.com/groups/virtualoffice

Nate - It does scare us somewhat to hear all the doom and gloom!  The market will come back and we will be out of this foreclosure/short sale epidemic.  Thanks for your post!

Buyers here are looking for the deal of the century. Needless to say most are focused on REO. Sad but until these are flushed out the will remain the focus

In actuality the banks do not want to flood the market with many REOs' at the same time. Do you know what would happen if they flooded the market with over 1,000,000 properties nationwide? The lenders are eager to push for a short sale than take the home back as a foreclosure. Most of them are understaffed and overwhelmed with the amount of delinquencies and were caught with their pants down, and now they're trying to play catch up.

Many homeowners are defaulting on their loans whether or not it is a fixed rate or an adjustable rate mortgage.  Homeowners that are on an adjustable rate mortgage are defaulting before their loan resets. Sub-prime mess is almost over, get ready for Option-Arms, and Alt-A loans. We have another 3 years to go, and these will be a lot worse than the sub-prime market. Be prepared!

Alejandro wrote :  "The lenders are eager to push for a short sale than take the home back as a foreclosure"

What ? REALLY not in AZ they don't !  I have been working short sales and that is not the case.

I had GMAC tell me today they rather take nothing if it goes to foreclosure ( as the second lien holder ) as opposed to 7,000 that we have approved for them.  We have the money they asked for verbally  approved and they won't send the release and the instructions to send the money ...  one of their short sales negotiators told me today to fax the file again if I want this done since she doesn't feel like looking for it on her desk she said it is somewhere on their desk but she doesn't feel like looking for it that she has 60 files on her desk Well  then learn how to prioritize by date and  get it done.  if you work on one file every 30 minutes that is  16 files a day .... and these people get paid a salary and bonus.  another one argued ith me today for 15 minutes ( the time he could have worked on the file mind you ) and told me that GMAC hed never taken money from the GOV. really ? Here is the story fresh out the press: http://in.reuters.com/article/privateEquity/idINN2732332220090227

 The he proceeded to tell me how much they will loose and the he doesn't feel sorry for the owner.... the loan was 12 % interest  a year, Yes they are loosing but is called risk !!!! , they should have never enter the home mortgage market .. they did so bad with autos what made them think they can do RE loans... all this while the property has an accepted offer as a shout sale, a buyer that has done an appraisal and inspection and a first lien holder that has approved the short sale and the hud we sent them.

where do they find these people ? Wall mart ?  

Well if they are so overwhelmed then please quit and let the other 5 million unemployed people get the job. How about them apples ? !!!!