Why Are LENDERS Sooooooo Stupid???

By
Real Estate Agent with Alain Pinel REALTORS BRE#00861017

For the first time in my life (30 years off and on in real estate), I have had a listing for more than a year. Granted, most of this time, it was in escrow, 3 negotiators for the first and 3 negotiators for the second and delay after excuse after delay ad nausea.

 

After 8 months, the most patient buyer walked away, having paid for an inspection, an appraisal, and waiting above and beyond anyone else I have ever worked with.

 

I warned the first over and over that if they didn't accept the offer and give $7-8,000 more to the 2nd, they would lose tens of thousands of dollars. This wasn't a threat, merely a statement of fact that we were still in a declining market in this neck of the woods and the longer they took, the less the property would be worth.

 

With each subsequent CMA, I demonstrated a decrease in value. It fell on deaf ears.

 

I don't understand why banks are so inflexible with their policies. Chase refused to accept $3000 and was adamant that they would rather have nothing than $3000. Should this property go into foreclosure, they would get nothing. They don't care if these kids lose their home and it is not their job to prevent foreclosure. (I took notes on these conversation but it would infuriate me to read them to go into detail how inconsiderate and unyielding these men in management were.)

 

Because Bank of America refused to give Chase the $10,000 I had requested, I had no choice but to have the buyer withdraw his above-market value offer, agree to give Chase $8,000 out of his pocket, and we re-wrote the offer to B of A at the current market value. This offer was $65,000 less than the previous offer but backed up by comps, a CMA and 10% above the median price. It was rejected. We came up another $5000 and NEVER heard from B of A.

 

Now the offer is withdrawn, the house is back on the market for $200,000 ($40,000 less than the previous three offers) and already has significant interest and one offer.

 

I don't get it. Why are banks wiling to lose money instead of helping people? Everyone knows that banks lose substantially more when they sell an REO rather than accept a short sale. Why won't they "mitigate" their losses and lose $200,000 instead of $300,000. I am, concerned that we are funding the bailout and the banks are being stupid and stubborn with their policies and NOT helping people. People need help-not unwavering policies that benefit no one-ot even the bank.

 

None of this makes sense and the most frustrating thing is even when I talk to supervisors and management, NO ONE is willing to help, change or bend.



Believe me, I am sick of short sales and if banks do not drastically change their policies immediately, no Realtor is going to want to take on the challenge, futility and insanity of banging their head against a wall to no avail.

 

Banks, you had better get your act together or you will all be out of business.

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California Contra Costa County
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short sales
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foreclosure prevention
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Rainmaker
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Rebecca White

Real Estate Agent - San Francisco
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