Tina Hagen, Real Estate Pro in Isle of Palms, SC

Is it just me? Or do you also get a sense, that in short sale situations, where the lenders have been tenderized, shall we say... Are they ready?

Asked by Tina Hagen, Isle of Palms, SC Sun Nov 28, 2010

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I have begun to see a difference with BoA.
Truthfully though, I think by the time the lenders know how to handle the short sales we will be close to being rid of all of the junk inventory. Don't mean to sound pessimistic.....
0 votes Thank Flag Link Mon Nov 29, 2010
While the process does seem to have improved for some, some others are refusing to sell property that they have foreclosed on b/c it looks better on the balance sheet than it does if they get the cash for it.
0 votes Thank Flag Link Mon Nov 29, 2010
Tina
I have noticed a recent shift in the behavior of some of the large banks where they are aggressively contacting borrowers that are behind and telling them they need to list their house with a Realtor and do a short sale. It appears the banks want to get the bad loans off their books faster. Another change seems to be a more aggressive stance in selling off these loans as well. The bottom line is first lien mortgage holders appear to be moving faster and be more amenable to completing short sales. Getting approval for the second mortgages may still be the more difficult part of the problem.
0 votes Thank Flag Link Mon Nov 29, 2010
Tina;
It's Pavlov's Dog Syndrome.
After getting hit continually with short sales you finally decide to get the "approved" stamp out.
Bell - Food
Short Sale - Approval
Web Reference: http://www.321property.com
0 votes Thank Flag Link Mon Nov 29, 2010
It's not that they are diametrically opposed to short sales. Consider the alternative, if the short sale is not approved, they end up foreclosing and it eventually costs them more than the short sale would have. The problem is the banks are still completely dysfunctional! If they would get their act together, if one hand knew what the other hand was doing, if they put practices and procedures in place that actually worked, they would be able to get themselves out of this mess with far less pain. But I learned a long time ago with other corporations, that you can't teach those who refuse to learn! I saw it happen to Westinghouse (when is the last time YOU saw a Westinghouse logo?). I watched it happen to AT&T (a shadow of its former self), I am watching a major pharmaceutical company do it right now, and I am afraid the banks are also marching confidently and forcefully down the road to what I call "corporate hari kari". They seem to be hell bent on destroying themselves, and anyone they perceive as getting in their way, and there is little any of us can do to stop them. In my opinion we should just get out of their way and let them get it over with. Nature abhors a vacuum and some smart young upstart bank will come in and fill the gap. Happens all the time and while the process is sometimes painful, the end result is almost always better!
0 votes Thank Flag Link Mon Nov 29, 2010
Banks become more negotiable on short-sales and REOs when their investors, the FDIC, or the Fed force them to shed more non-performing assets off of their books. The bailout money is what's enabled them to hold out for so long. Take that away from them, and they'll all become much more negotiable quickly.

However, that's not going to happen anytime soon. Yet, Fannie and Freddie have lit some fires under the feet several banks, and now some of those banks are starting to dance. Maybe that will "encourage" more banks to engage/negotiate more, but I won't hold my breath.
0 votes Thank Flag Link Sun Nov 28, 2010
If by “tenderized” you mean softened up and ready to be chewed up…NO! The lenders are learning how short sales work, finally, in the same way that agents and the public in general have been learning. The rules are constantly changing. Lenders apparently are learning that cooperating in a short sale is often preferable to going through with a foreclosure (Duh! What have we been trying to tell them?) I believe that is because they already own so many foreclosed properties that their appetite for more is very low. They are also putting more systems in place (i.e. BofA’s Equator) to process short sales in a more standard and organized manner.
At the same time, agents are finding that training in short sale specialization (i.e. SFR and CDPE) provides the tools to successfully pursue, procure and process short sale listings. The same training is also valuable when working with short sale buyers.
0 votes Thank Flag Link Sun Nov 28, 2010
I feel the same. Presently involved with three short sales under contract ... two of them have "come to life" in the last 10 days and appear to be headed for a closing soon.
0 votes Thank Flag Link Sun Nov 28, 2010
Some are tender and some are t-o-u-g-h!
Web Reference: http://topbrainerdagent.com
0 votes Thank Flag Link Sun Nov 28, 2010
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