Time is NOT of the Essence!

By
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?

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Topic:
ActiveRain Community
Location:
California Sacramento County Sacramento
Groups:
CALIFORNIA REAL ESTATE
Everything California
Posts to Localism
The Ninety-ninth Percentile
Tags:
sacramento real estate
sacramento foreclosures
sacramento bankruptcy
sacramento short sales

Comments 15 New Comment

Rainmaker
246,043
Gena Riede
Real Estate Broker - Sacramento CA Real Estate (916) 417-2699
Riede Real Estate, Lic. 01310792

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.

January 12, 2009 09:42 PM
Rainmaker
1,687,715
Gabe Sanders
Stuart Florida Real Estate
Martin County Residential Homes, Condos and Land Sales

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!

January 13, 2009 06:50 AM
Rainmaker
793,149
Lyn Sims
Schaumburg Homes
RE/MAX Suburban - Schaumburg IL Real Estate - Northwest Suburbs of Chicago

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!

January 13, 2009 07:34 AM
Rainmaker
400,144
Terry Miller
Miller Homes Group and Tyler Apartment Locator
Miller Homes Group

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

January 13, 2009 11:05 AM
Rainmaker
243,101
Kristi DeFazio
Colorado Springs Rea lEstate 719-459-5468
RE/MAX Advantage

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!

January 13, 2009 12:29 PM
Rainmaker
246,043

Gena Riede

Real Estate Broker - Sacramento CA Real Estate (916) 417-2699
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