Ok, like a lot of RE Professionals wading thru today's Market anomalies. Each day is a day of enlightenment. Today after 4 months of submitting a valid offer for a Short Sale, of which that buyer has since lost interest, I have to submit another offer, I learn the process must start over. In other words I must wait for another 4 months, for an acceptance or at the very least a consideration. So mean time the house sits empty, weeds grow higher, further pushing the home into a declining state of neglect and value.
So my fourty-six hours plus of phone calls, printing offers and submitting them, answering phone calls from agents that want to show and sell are now a total waste of my time and theirs. So by the time I get this sold if that actually happens I figure I am making about $1.65 an hour or less. OK, so now what, why would anyone want to participate in this exercise in futility?
Kind of makes it real clear why the Lending Institutions are in sooo deep. How can the Banks run a business like this and expect to succeed. The topper was reading an article in the local paperhttp://www.pe.com/localnews/inland/stories/PE_News_Local_S_backlog16.4501ccf.html confirming my analyst of what the Banks plan of action would be when Mr. President offered money from the tax payers for FREE. The Banks didn't have a game plan other than how much money they could get to supplement an obviously failing business plan they refer to this as "TOXIC ASSETS".
Anyone with common sense knows what is really needed to pull the housing market out of this tail spin. In the above article which is no surprise to any professional RE agent working in the trenches, The Lending Institutions are now holding back the homes they have already foreclosed on in hopes of bottoming out the declining values, but instead are in reality causing further decline in values and prolonging the misery. And to top it off with interest rates at an all time low, those that are ready willing and able to purchase a home are finding it difficult to get the loans because of gun shy appraisers not wanting to put their name on a home that may or may not be of the current value in a week or two. This is the dog chasing it's own tail. The demand for these homes is here, we are coming into a season when buyers are ready to make a move, but with Banks only trickling out the inventory, bidding wars are prevalent. Bidding wars will not drive the home values up. That was yesterday (2004-2006). Today if you are going to offer low interest rates deliver the available goods, and make the loans!!! How else will the Banks be able to rid themselves of their "TOXIC ASSETS". The time is now!! Hello, anyone out there?
In my never to be humble opinion, now in the next six months the RE market can turn around, first the Lenders holding all the "TOXIC ASSETS" need to get off the crying couch and start putting houses on the market and making the loans, accepting Short Sale offers in 60 days or less! Lenders then could quite possibly help turn this economy around. But first they have to cut loose of the apron strings (Tax Payers Money) and take their lumps. They are running a business, take the loss, and get on with business! Let's roll with what we have, and please, stop whining.
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