Time is NOT of the Essence!

Real Estate Broker/Owner with Riede Real Estate, Lic. 01310792

Foreclosure and Short SalesWhat are your thoughts on Bankruptcy Judges handling the current Foreclosure crisis?

It's obvious that the servicers cannot keep up with the current demand of Short Sales and Foreclosures.

Just today, when calling for an update on the two Short Sale listings I currently have listed where IndyMac Bank is the mortgage holder, I was told that they receive at least 500 new Short Sales per day!  The  Short Sale package was sent to IndyMac Bank along with offers for each at the beginning of October.

Needless to say, time has NOT been of the essence for IndyMac Bank.  Last week I was given email addresses for the negotiator but have heard nothing back from either one.  This morning I was told that there is no other solution but to just wait until I receive an email from both negotiators. No phone number will be given out and no projected date was given when I might anticipate hearing anything.

It is obvious to all or at least it should be, that the servicers can not handle the load of all the homeowners in trouble with their mortgages.

Check out CNBC's video on Housing's New Fix and see where you stand.

My question is how in the world are the Bankruptcy Judges going to be able to handle the load? What do you think about a Judge reducing the mortgage through a Bankruptcy? Will we have a nation filing bankruptcy?

The loan modification program that some of the banks have instituted seems to be an act in futility. What the banks are finding is that those modifications that they have actually approved resulted in the homeowner simply delaying the inevitable and losing the house. It would seem that the loan modification programs were designed for failure.

As Realtors we know that time is of the essence with all Real Estate transactions.

What is your solution to this problem? With government stepping in, are we solving the problem or creating a new one? What is your take? Do you think the Bankruptcy Judges will be the cure all?

Comments (15)

Josh David
Bridgeview Bank Mortgage - Tampa, FL
Purchase Specialist... www.joshdavid.us

Hello Gena, I belong to a group "Carpe Diem Partners, LLC'. Carpe Diem offers a free negotiation for your short sales for FREE and there is NEVER an expense to either you or your clients.

Carpe Diem is a buy and sell company, not buy and hold company. Carpe Diem has completed over 500 successful short sale transactions, and currently holds over $37M in escrow.

The process typically takes 60-120 days. All Realtors are still entitled to their 2.5% commissions on all of your listings. You will list your property on the MLS like a normal listing with your client, once Carpe Diem has an end buyer, CDP will buy from the bank and sell to the end buyer.

If you are interested, I would love to talk to you about getting started. I simply provide you with an informational lead sheet, (email me for one, josh@josh-david.com) and  send it back w/a CMA and we will have an approval w/in 24-48 hrs. As of next week, you will be able to track all process in its entirety online @ www.mycarpediempartners.com (the website is still under construction, so please don't probe around in it yet)

Sound good?

Cheers to "09"


Jan 12, 2009 05:31 AM
Kaye Thomas
Real Estate West - Manhattan Beach, CA
e-PRO, Manhattan Beach CA

Gena-Indy-Mac is still being run under gov't  guidence and I suspect they don't have a clue.  Most lenders have an awful time with short-pay requests or REO's as they don't have the staff or expertise to deal with them.  The last short pay I did took the bank 3 months to even talk to us... Good Luck


Jan 12, 2009 09:44 AM
Kelsey Barklow
Hurd Realty - Johnson City, TN

That seems to be the problem, none of them has a clue as to how to handle all of these short sales/foreclosures. You would think they would have some type of organized system in place by now. How long can it possibly take to get a system in place? At least with a system in place, it wouldn't be such an overwhelming process for them.

Jan 12, 2009 10:03 AM
Kelly Parks, M.S.
Paris Gibson Realty - Great Falls, MT

Hi Gena,

Even here in Montana where the foreclosure rate is 1 to about 7500 homes as compared with California where it is 1 to 216 homes (as per Reatly Trac) it still takes months to get through short sales.  I cannot believe that the banks and the government have not implemented some sort of formal project management system to get through this crisis.  I have never seen such a poorly managed mess ever.  Good luck and keep emailing and calling.  Those who scream loudest seem to get through faster.


Jan 12, 2009 10:43 AM
Lynda Eisenmann
Preferred Home Brokers - Brea, CA
Broker-Owner,CRS,GRI,SRES, Brea,CA, Orange Co

Hi Gena,

Seems to me like you said it for yourself "It's obvious that the servicers cannot keep up with the current demand" I think that's the bottom line. As for bk judges, yep will most likely be another layer to deal with.

Jan 12, 2009 11:59 AM
Bill Gillhespy
16 Sunview Blvd - Fort Myers Beach, FL
Fort Myers Beach Realtor, Fort Myers Beach Agent - Homes & Condos

Evening Gena,  The lenders have to " get real " or the bulk of the current short sales will go to foreclosure anyway ! 

Jan 12, 2009 12:01 PM
Gena Riede
Riede Real Estate, Lic. 01310792 - Sacramento, CA
Real Estate Broker - Sacramento CA Real Estate (916) 417-2699

Josh, thanks for the commercial. Sounds interesting. It is customary not to put links into a comment on someone else's article. If interested they will seek you out and read your articles.

Kaye, isn't it something. You'd think they would be interested in getting the most money but they delay so long that Buyer's move on and once they foreclose the price is even lower. Amazing that they haven't figured that out yet!

Kelsey, absolutely. No system. Brainless!


Jan 12, 2009 01:08 PM
Mike Henderson
Your complete source for buying HUD homes - Littleton, CO
HUD Home Hub - 303-949-5848

Man it's a quagmire.  There are all sorts of things wrong and messed up with the process.  How about this idea before we give banks any more Tarp money they have to have documented procedures and the staff in place to handle this.

Jan 12, 2009 01:14 PM
Gena Riede
Riede Real Estate, Lic. 01310792 - Sacramento, CA
Real Estate Broker - Sacramento CA Real Estate (916) 417-2699

Kelly, I think I am a thorn in their side since I am continually calling and now emailing. At some point I hope that someone from IndyMac will see fit to reply.

Lynda, they certainly can't and with no systems in place it would appear that they are incapable of handling the job. Can't understand for the life of me how they can't see how much money they are loosing with their current lack of timeliness.

I can't imagine what will be in store once the BJ come on board...

Bill, absolutely. And I have PROOF that the banks loose more money when they don't deal with Short Sales but allow the property to go to foreclosure. It's really sad to see that much stupidity. And to think that our tax money is bailing them out when they can't manage money!!

Jan 12, 2009 01:15 PM
Gena Riede
Riede Real Estate, Lic. 01310792 - Sacramento, CA
Real Estate Broker - Sacramento CA Real Estate (916) 417-2699

Mike, I'm with you. I'm sick of handing over money with no stipulations or guidelines when it's so obvious that they need them.  Very good suggestion!

Erica, ah you're more than likely correct.  Very frustrating for all involved, the seller(s), buyer(s) and Realtors.

Jan 12, 2009 01:42 PM
Gabe Sanders
Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

Gena, you're 100% right.  Don't even get me started on what I think of these bank's loss mitigation departments.  They are squandering away money like crazy!

Jan 12, 2009 10:50 PM
Lyn Sims
Schaumburg, IL
Real Estate Agent Retired

Wow, that makes them definitely overwhelmed. Hard to sort out and get rid of any of them when your totally inundated.  I'm still not going to feel sorry for the banks though or the employees.  At least they have a job!

Jan 12, 2009 11:34 PM
Terry Miller
Miller Homes Group - Tyler, TX
Miller Homes Group and Tyler Apartment Locator

Good luck. Our Real Estate division has stopped doing short sales. It takes to long and is way to intruesive for our buyer.

Jan 13, 2009 03:05 AM
Kristi DeFazio
RE/MAX Advantage - Colorado Springs, CO
Colorado Springs Rea lEstate 719-459-5468

I think they need to invest in hiring more people for these Jobs. That could help the job market! I know these processors are so overwhelmed with each one doing about 500 files at a time (that is what I was told by a Citigroup rep. on my last one!

Jan 13, 2009 04:29 AM