The banks are taking a long time to decide on foreclosures for one reason: They can't do it any faster. Many asset managers are handling 500 files per month. The banks are overwhelmed with foreclosures and understaffed. Not only are they dealing with potential sales, but there are a flood of other homes in foreclosure that need to be listed and put on the market, in addition to tons of others receiving notices of default.
Banking insiders -- sources that I cannot name -- have told me the banks are withholding foreclosures from the market and releasing them when inventory begins to dip. They are allegedly withholding these bank-owned homes to drive up prices on their existing inventory. If too many homes hit the market at one time, competition will dwindle and prices will plunge even further.
It's like juggling ten balls in the air. These banks didn't expect the foreclosure crisis and are ill-prepared to deal with the mounting number of foreclosures. This is not in defense of the REO lenders, it's just the way it is. If buyers want to buy bank-owned homes, then they work within the confines of the bank's limitations, and smart agents will write contracts with 45-day closings instead of 30.
The Short Sale, from Archer Ellison, coming January 2009.
Photo: Big Stock Photo
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Certified HAFA Specialist
My Sacramento Real Estate Listings
Elizabeth Weintraub is an author, home buying columnist for The New York Times-owned About.com, a Land Park resident, and a Land Park real estate agent who specializes in older, classic homes in Land Park, Curtis Park, Midtown and East Sacramento. Weintraub is also a Sacramento Short Sale agent who lists and successfully sells short sales throughout the four-county Sacramento area. Call Elizabeth Weintraub at 916.233.6759. Put 35 years of real estate experience to work for you. Broker-Associate at Lyon Real Estate. DRE License # 00697006.
The Short Sale Savior, by Elizabeth Weintraub, available at Amazon.com.
Lyon Real Estate is not associated with the government, and our service is not approved by the government or your lender. Even if you accept this offer and use our service, your lender may not agree to change your loan.
Photo: Unless otherwise noted in this blog, the photo is copyrighted by Big Stock Photo and used with permission.
The views expressed herein are Weintraub's personal views and do not reflect the views of Lyon Real Estate.
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