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Palisades Go…,  in Clermont, FL

Why aren't the banks getting rid of the short sale homes when they are holding offers for over 6 months?

Asked by Palisades Golf & Country Club, Clermont, FL Thu Sep 24, 2009

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There are a number of excuses.....none of which, in our opinion, "hold water."

Could they be waiting for another handout?
0 votes Thank Flag Link Fri Sep 25, 2009
They are waiting for the next Trillion Dollar stimulus from Uncle Sam to cover their losses.
1 vote Thank Flag Link Thu Sep 24, 2009
Banks do not care, They have enough money come in from the government . Why they need the short sales?. If the government did not pure so much money into banks then maybe, if the Ceo, the Managers, and all employee salaries were at risk ,then maybe they will take all the short sales seriously. As long as my money and your money go to the banks, Nothing will happen.

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1 vote Thank Flag Link Thu Sep 24, 2009
There are a number of reasons. One is that the banks are still playing catch up training and hiring short sale employees. This isn't a high priority for them because short sales have a downside for banks. Also, the people now working on short sales are inundated with files. These people make minimum wage and really don't give a rip if your file is handled quickly or not. Last on my list is inexperienced agents sending in incomplete files.

The downside for the bank is that a foreclosure while costing more and taking more time actually eliminates any second lien holder, only the principal note holder gets paid. Fully staffing and training their short sale departments, IMO, is being done more to satisfy the feds than to handle the deluge of short sale applications they get. Imagine coming to work on Monday and having a stack of 300 files on your desk and your job is to get through them by Friday. With little oversight, who knows where half those end up.

Last are the agents who haven't been trained to handle short sales. There is a method to this just like there is to REO's or commercial or condos. NAR has an excellent free webinar on Successfully Closing Short Sales, check it out on line. There is so much more agents could do to expedite the process but until they get trained we'll continue to see this soup sandwich disintegrate before our eyes. aloha
0 votes Thank Flag Link Thu Sep 24, 2009
Looks like these people have great answers.
0 votes Thank Flag Link Thu Sep 24, 2009
The banks have insurance against a non-preforming loan if it forcloses. This insurance pays off the loan and then the money from the sale is profit. If they forclose then they are offered a $1000 incentive from the government. Which sounds more profittable to you. It all comes downt to the money!
0 votes Thank Flag Link Thu Sep 24, 2009
Great Question - but I don't have a answer - but wish I did.
0 votes Thank Flag Link Thu Sep 24, 2009
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