There is currently a proposal to do just that! The reasoning is that it is more economical to complete a short sale than to allow the delinquency to progress to a foreclosure. We have been arguing this fact for some time. In our opinion, short sales are better for all concerned: the bank, the home owner, even the neighborhood. And that translates into a better economy overall.
We would like your opinion. While most would agree that government should not be overly involved in private business, neither should private business expect the government to bail them out without some controls. What do you think?
Why have the banks not followed through on short sales? There are many answers and they vary depending on to whom you are talking. The banks were not prepared for the volume they encountered. Some of the basics we see are as follows:
- Large businesses are slow to change. Banks have gotten to be very large businesses, and they are scattered all across the globe.
- One department does not know what another department is doing. While loss mitigation might be working on a short sale, foreclosure department continues with the foreclosure.
- A serious lack of knowledge (a lack of training) created by the rapid growth of the departments needed to handle this situation.
- Lenders themselves were in denial. You know, that “pretend it doesn’t exist and it will go away” attitude.
The list goes on… but the fact remains that we (after all, we, the people, ARE the government) are bailing out the banks. Should we not have some control over how they use our money? Is not the idea to help our economy, which in turn helps us all?
We want your opinion! Please use the comment area below or email us directly to state your view on this subject. Your input will be passed on to Sacramento! Here at Encore Real Estate Services (EncoreRES.com) we are dedicated to building better communities. We are active in the Realtor® Associations (local, state & federal), local and state government, and of course our communities. Your input makes this possible.
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