LA Connection Property Blog: August 2008

Why "Bank's Losses" & the "Mortgage Crisis" will not end anytime soon

This past weekend I wrote a Blog about "Bank owned properties - Trying to get an offer considered".

Several comments from other Realtors confirmed the frustrations I was experiencing in trying to close a deal on a bank owned property. So I decided to determine exactly why the Listing Agent for this particular bank owned property is so slow to respond to me as a Buyer's Agents, if at all.

I ran a search on The CLAW MLS to see how many listings the particular agent I was trying to deal with had as "Active" Listings. To my amazement she had 181 properties listed under her MLS account.

Of these 181 properties it appeared that 4 were privately owned homes (ranging in price from $1,295,000 - $6,795,000) and the other 177 active properties were  Bank owned foreclosures (ranging in price from $114,900 - $869,900).

How is it possible that one agent (even with a number of assisstants) can logistically handle all these listings and do justice for the Banks and get these properties sold?

These properties all have lock-boxes, so the agent (and her assistants) never need to actually show the properties. Is the Agent aware of the condition of the properties, and if not, how can she fairly negotiate on thesm?

Do the Banks sincerely believe they will unload their portfolio of foreclosed properties by listing them in this manner?

What was further disturbing to note is that several of these listings have been on the market for over a year - and some of the listings have information that is outdated by many months.

Is anyone at the Banks taking the Mortgage Crisis seriously? Their losses will continue indefinately until a practical and viable course of action is adopted to clean up their portfolios of foreclosed properties.

Until this happens the Banks will continue to suffer further losses and wil not be able to start lending in order to alleviate the Mortage Crisis.

Comment balloon 24 commentsCOMPASS PALM SPRINGS | Stewart Penn • August 04 2008 12:40PM
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