What is the hold up with the lenders??

I am really starting to believe that the lenders are sabotaging their own business and in turn is hurting our economy.

Buyers are putting in offers on short sales and it could be six months before the bank or mortgage company comes back with the price they want to see. (Based on a BPO) they had done six months before. In the meantime prices have dropped again because they did not move to give compatibles in the marketplace. Not only that but the agents that they are choosing to give the bank their opinion on the property do not take into account for things that drop property values such as overhead wires and being backed up to the street.

Now the waiting for an answer may be OK for an investor, but what about a family that is moving and needs to get into a home. Six months is too long for them to wait. They move onto another property that they can get into right away.

I have had a listing for over a year, we got an offer on it and based on what was going on with the property and the market, it was a fair offer. Yesterday, over six months later we finally got an answer as to what the bank wanted out of the property. They want $15,000 more than the offer and prices have dropped. This happened to be an investor that made the offer but he now has walked away for the deal with no counter offer. (another 6 months???) So next for this property will be foreclosure and the bank could have sold it.

I am disgusted at this turn of events. Buyers of America Hurry Up and Wait

Is help really on the way?

I have been saying for months, why do the lenders not go to the borrowers that are in trouble and see if the loans could not be restructured?

I know there are some responsible buyers out there that have just fallen victim to bad loans. Some have hit on hard times such as job loss or injury.

I also know that there are greedy individuals that bought in a hot market, sucked all the the equity out of the houses and then wanted to sell. Oops, now there home is not worth what they owe on it. They can not get the house sold and are looking at foreclosure.

But no matter which kind of borrower they are, I think the lenders need to step up, and work with everyone facing a foreclosure. Otherwise, this could become another Savings and Loan debacle with billions of taxpayers dollars going into a bailout.

It looks like it might be happening according to CNN Money and articles I just read from October 25th and Nov 5th 2007, Countrywide in conjuction with Neighborhood Assistance Corporation of America are going to help people in trouble. They may even help people that are not in trouble.

Not everyone is happy about this but, I for one applaud the efforts of Countrywide and hope that more lenders follow suit.

read more