Bailout the Banks? I am tired of hearing the banks whine. Not only did they give risky loans but they will not fix their policies to correct the situation. I am currently, working with a homeowner to sell his home before it goes into foreclosure. We received an offer, a short sale offer. The bank, American Mortgage Servicing Group, took 9 weeks to counter the offer. The Buyer has moved on to another house. The assigned representative tells me that the home will return to the foreclosure department and when I get another offer, the process will start again. I explained that Buyers will not wait 60 days or more to hear a counter or even an acceptance. Her next remark was regarding how many files that she is dealing with at any given time and that she could not keep the ones that do not have current offers.
There is the catch 22. The banks say that they will work with the homeowners to assist them but their policies and the overworked, uninformed employees do not help at all. It is in the banks best interest to sell the home before it forecloses. Selling the home keeps attorney fees lower, prevents the bank from having costs for utilities and maintenance on the home, costs for more taxes due and home owner association fees, liability of a vacant home sitting there, and more. But instead of the banks making the process easier and faster for the Seller and the Buyer, they make it almost impossible. Moreover, with an abundance of foreclosures, short sales, discounted new and resale homes available on the market, you would think it would be in the banks best interest to expedite a sale when they get a reasonable offer.
What is the answer? During this time when foreclosures and short sales are at an excess, the banks needs to examine their policies and hire and train more employees. Just look at the bank I previously used for an example: Why does the process have to begin all over again? There should be an employee who works these files in the interim. That employee manages the files once the file is approved for a short sale and the appraisal has been done. That person could keep the file updated so that when an offer does come in, that file moves to the top of the list. The files should be prioritized based on offer amount ratio to what the bank will accept and the Buyers requested closing date. When a Realtor is involved, that Realtor does a lot of the work; therefore, the Realtor should have a direct contact with that interim person to expedite the offers and documentation needed. Each bank is different but if the bank executives would talk to Realtors and their own bank employees involved in the process, this could all be simplified!
Overhaul of this system is my battle cry! Do not give the banks money for these foreclosures but force them to look at their own systems. If nothing is done, including not giving them money, it will all eventually work itself out like the market usually does. But my goal is to help the homeowners and save the banks money, thus helping our economy.