Project Lifeline

By
Real Estate Broker/Owner with Cornerstone Realty Partners

I know that lenders have just agreed for a 30 day freeze on foreclosures. Sounds nice.

The real issue is the responsive of the lenders and their servicers to what is happening on the ground. If it helps one family out and enables them to work out with their lender an opportunity to stay in their home, then I am all for it.

The bigger issue is that many lenders are either so overwhelmed, or because the servicers are so removed, they are unaware to real values and issues pertaining to the properties they are involved in. Case in point, one 2 family that I listed that was in foreclosure and the only exit strategy was a short sale. The property was in significant disrepair, tenants who let their animals run wild, work that needed to be done, in an area that was challenged.

Our first buyer was ready, willing and able. Wanted to move in and do the work, but due to the excesive time it took to get the 2 lenders to agree to a price had to move in a different direction. We found another buyer, but the market took a slight downturn, and for a few thousand dollars the lender refused the offer.

Now, here sits a vacant house. One which is waiting for auction, didn't get winterized (wait till they see the damage that caused). At this point they'll be lucky to get half of what was offered previously. It's time for lenders to take in to account what the eyes on the ground are seeing, and negotiate when necessary. Adding on additional debt to the current homeowners while property values are declining may not be doing them a favor. I know it sounds cliche, but sometimes you have to take a step back to make two steps forward.

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Rainer
12,546
Ron Molcho
American Homes of S.I. - Staten Island, NY
Point well taken. It is a travesty that getting the banks to make a decsion would take so long. They are only doing themselves a diservice.I recently had a similar encounter where the bank called me 4 months after they foreclosed to ask whether the house had been winterized...Sounds like passing the buck cost them quite a few.
Feb 17, 2008 03:39 AM #1
Rainmaker
129,204
Gaye Granice
Robert Defalco Realty - Staten Island, NY
Associate Broker
It sounds to me that the banks need to be more on target with each individual circumstance and really willing to get the job done in a timely fashion.  If they were more cooperative they probably could have avoided the foreclosure.  
Feb 18, 2008 12:02 PM #2
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Rainer
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Frank Rizzo

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