Lets give a round of applause to the banks, and where would we be without them!
I remember the Wells Fargo commercials used to say, "We are your friend and we want to help be a part of your life." Too bad the banks aren't like their commercial lead the public to believe. Many of us have seen two totally different business faces of many lending institutions when writing offers on their REO properties.
Business Face #1. "We want you to trust us and we will help you save for the future. Come in to any of our friendly locations and let us help you."
Business Face # 2. "If you buy one of our REO then we'll shorten the contingency periods and you'll have 10 days for the inspection and loan to be fully in place. Oh by the way even though you are buying it with an FHA loan, and we know it takes longer to fund these loans because we also service those types of loans, we are only going to give you 30 days or you'll pay a per diem everyday you're late." What's a per diem your client's may ask? it's a positive word normally associated with the business world for getting extra compensation when traveling, unfortunately banks don't want to call it a FINE or PENTALY because that's bad for their business face #1.
I would like to see a one month period where no REO properties from these shot calling banks are presented any offers by any buyers. Instead, we as Realtors say, keep your inventory and when you decide to come off your pedestal then we'll talk because our buyers don't deserve your second face style of business (AKA 2 faced style) and besides, we bailed your as*es out with the TARP money anyway.
I have represented a number of buyers in REO transactions with Wells Fargo and BofA both saying, "Go ahead and get the inspections going even though it might be a week before you get our signed purchase agreement back because... "THE CLOCK IS NOW TICKING." Now that is a great way to do business! Tell your buyers that even though there technically isn't a contractual agreement in place we'll just take the bank's word for it because they "want us to trust them."
Not every REO transaction fits this exact description but plenty have and while some asset managers have been cool about waiving the per diem, others act like it's tied to their bonuses. I know a number of Realtors that handle REO properties and I understand their frustrations too.
With as many Realtors as there are across the country we should all pick a start and ending date and call it "Realtors Ending Offers" month also know as REO month!
On an ending note, dealing with the banks reminds me of going to a zoo or animal park. You pay admission to get in and then you buy their food so you can feed their animals.
Just a little wishful thinking on my part!