Have you noticed lately that banks and lenders are less willing to deal when it comes to REO and short sales? In fact, we just saw a bank turn down a short sale offer that was only $4000 less than asking ( grant it, they had lowered the price 5 times in 3 months) and let the house go into foreclosure. The banks have tried in the past to get into the real estate business with little luck and a lot of nay sayers.( I for one do not see the NAR's objection to this. They have no problem letting Realtors be lenders!) But it does bring the following question. Will banks and lenders use the current housing and credit crisis to make the argument that they need to be in the Real Estate industry to profitability manage their REO portfolio? I believe it could be a possibility. While banks are under scrutiny there is also a pretty open ear with the Federal Government to want to assist them in staying afloat ( i.e. Bear Sterns..... OK Bear Sterns is not a bank but come on this is unprecedented, even if you compare it to the Chrysler bail out). How many millions, or billions could be saved in Real Estate commissions in passing these assets into stronger hands if the banks can actually earn the commissions? Now do not get me wrong, I am not saying that this is a great idea I am just asking could it happen.............
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