Subprime loans and other various factors are not the only problem with the glut of foreclosures on the market.  I'm a REALTOR in Florida, where according to this report, had the highest number of filings. 

I can give you a few more reasons WHY this is the case: 

I have a seller in the midst of this process. He is a recently retired Military man, trying to find a new career  His wife got disabled in a car accident and was out of work for awhile, so of course they ran behind on their payments The accident which caused the wife's diabilty also totalled their vehicle, so when she was able to go back to work, they were having to share the one remaining vehicle.   (Insurance companies apparently don't move at the speed of lightning either).

 The lender, ABN-AMRO is impossible to deal with - assuming you can ever get them on the phone (avg hold time 40 minutes, then transfer to several other people, avg hold time between switch, 20 minutes+) that pretty much consumes an entire day, and you still don't find anything out. 

The really sad thing is that we had a buyer for this house who waited for WEEKS to hear something, with no response.  I kept asking who I could send the contract to, nobody knew.

I finally got mad, and called Freddie Mac's office, to be told that ABN-AMRO was 'overwhelmed, understaffed, AND to make matters worse, being bought out by Citi Mtg - thus most of these people will lose their jobs'. 

hmmmm... they may very well get foreclosed on too and get to enjoy the experience they provided while they had a job.

Was that supposed to make me feel better?  They are  overworked, understaffed, ineficient AND  don't care because you are losing a job?  At least you aren't losing a home and have to move your family to another location, which will be hard with a foreclosure on your record.  In his defense - the nice and intelligent)Freddie Mac rep told me to send the offer to him, and he would deal with it personally.  By then,  as we found out, the buyer was long gone. 

What a pity.  A retired Military man, who served our country, with a buyer who walked after waiting so long and bought another property, all the while they have plenty of time to move ahead in the process to foreclose, just not enough time to talk to me about an offer so they don't have to foreclose.    Something just isn't right about that situation.   

 The sale date is May 14th and now we have to find another buyer, and go through this process all over again?  He will get foreclosed on before I can get someone to answer the phone if I had a buyer right now.  

At this point in time, many people are probably wondering why there are so many foreclosures.....yes subprime lending is part of the reason, lack of inventory due to the hurricanes and over-bidding for the houses on the market was another, appraisals that supported these loans are another,  but  inefficent  REO divisions are probably the biggest reason. 

 It's time someone let THIS cat out of the bag and do something about it.  I'm appalled that people are losing their homes and getting their credit ruined,  while there are people who want to buy the house.  There is absolutely no excuse for this.  Apparently there are plenty of people in charge of escalating the court sale, in the meantime, there are buyers who want to buy the house and you can't find someone to send an offer to. 

I have heard stats that it costs approximately $40- $50K to foreclose on a house.  Instead of paying that money out, why don't these REO divisions HIRE MORE HELP  and streamline the process so they don't have to foreclose??!! 

The people making out like a bandit in this ballgame are the attornies and the investors.  The retired Military man who served his country is now being taken advantage of. 

This reminds me of the S&L debacle.  Sound like a familiar scenario to any of you out there?  Same thing, different millinea.....and nobody learned a thing from it, but plenty of investors made money, plenty of people were homeless overnight.

That is just not right.