I am amazed when I see the banks process for disposing of REO and short sale properties. They just don't seem to get it! They wrote a bad loan, now they need to face the music. The financial system is on the brink of disaster and foreclosures and short sales are the norm in most markets.
I have negotiated numerous short sales and have sold many foreclosures. The loss mitigation departments are super busy and need more help and better systems. They are not equipped to handle mass business, one huge company that I have dealt with still uses regular fax machines instead of using digital faxes. We all know how those old fax machines work or don't work for the most part. This leads to files being lost, never recieved and one more step for the bank to take in uploading the file to their system. The next thing they need is a way to evaluate the property in a timely manner and make a decision based on what the home is worth today. There are enough brokers out there that are doing BPOS quickly and accurately, all they need to do is order 2 and take the average to get a good market analysis. With the proper system in place, this can be done in a timely manner. The system that is needed the most is a system that, based on the current value and the offer being made, can approve a short sale without needing a committee to decide. This won't work with all of them since many are low ball offers but it would work for the good offers that reflect market value. If a home is worth 200K and an offer comes in at a certain %, the offer is accepted and the file closed. Seems easy enough instead of being transferred to several different departments and people. This would help to eliminate the typical situation of having a short sale offer that does not get accepted, the home gets foreclosed and sells for less than the offer for short sale. This happens too much and does not benefit the lender since they spend even more money to foreclose and end up selling for much less.
No one likes short sales and the banks are not in business to lose money but at some point they need to get with the program to at least try to help alleviate the mess that they are in. Too many times, they foreclose and lose even more.
IF THERE ARE ANY LENDERS WHO READ THIS......
GET SOME RELIABLE SYSTEMS IN PLACE, YOUR PROCESS IS YOUR PROBLEM!!!!
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