Rampant short sales and huge lender losses

I understand the pain lenders must feel with all the losses they are suffering right now.  So, why doesn’t someone from within, from within and above, streamline the process so they can minimize their losses and move on??  The extent of the bureaucracy is unbelievable.

The short sale process: a classic bureaucractic quagmire

A prime example of lenders cutting off their noses to spite their faces is what’s happening with my clients P and T.  They are all cash buyers, ready to act swiftly and close within a couple of weeks, but looking in areas where virtually every listing is a short sale or a foreclosure.  We restricted our search to properties whose listing agents had specifically told us they were extremely close to getting bank approval.  We wrote offers on two properties, both with reassurances that we should have an answer within a week or two at the latest.  It has been 6 weeks with the first, and almost 5 with the second.  We get no courtesy updates, no calls even inquiring whether we are still in the game or have found another property. 

The perfect property with an imperfect agent

Meanwhile, we’ve been keeping tabs on the market, checking out new listings, hoping for an REO (banked owned) property that would meet their needs – these sellers (i.e. the banks) generally respond quickly and we’d be able to close in a couple of weeks.  No such luck, but we did find The Perfect Property.  The problem is,

1. it’s a short sale,
2. it just came on the market, and
3. the listing agent has done no homework. 

This particular listing agent lists homes with particularly low prices to generate lots of offers, submits them ALL to the lenders (there’s a first and a second trust deed holder), and then waits for them to make sense of them all.  While the banks are proceeding with the short sale approval process, he continues to submit offers as he receives them, bogging down the system.  Eventually, the lenders come back with a minimum approved figure, of which the listing agent then informs all buyers, giving them an opportunity to respond with their highest and best offer.  Then, buyers must wait again for the next round of bureaucrats to assess the offers and pick one. 

A very long wait

We were informed this process would take 90 days!  Here are a couple of high quality buyers, willing to pay FULL price, all cash, and the lenders are stupid enough to risk losing them.  It all could be settled within a matter of a couple of weeks.  But because the lenders haven’t taken the time to create an efficient system for dealing with offers, and because the listing agent is lazy and doesn’t want to do the extra work of finding the best offer to present to the lender, we have to sit around and wait for this inefficient process to run its course…  We may or may not stick around…

The continued weather reports of the gripping cold across the Midwest and upper northeast have once again made me aware of how lucky I am to live in San Diego California.  Today is sunny, clear skies, and in the 70′s! 

I find it so easy to become complacent and just go about my life, mostly outdoors, without the thought of putting on a heavy coat, hat, gloves and warm boots.  There are no problems with skidding on ice or having my windshield wipers on extra fast to clear the pouring rain! 

Yes, I pay heavily to live here – a smaller home at a higher price – but to me it’s worth it.  While many are spending time in their homes in front of their fireplaces, I am about to take a walk on the beach! 

I live in North County Coastal San Diego, where the surf meets the turf in Del Mar, and, on a clear day like today, one can see islands 100 miles away!   Well, off to get my sunscreen and book and head to the beach!

While those of us working in Del Mar Real Estate are having a very slow month, our colleagues to the north can barely keep their head above water. 

Hot Real Estate Deals!

The market in Oceanside, Vista, and Fallbrook is so hot for buyers, just about every listing has multiple offers!  I’ve been working with several clients looking for homes in those areas, and we’re seeing homes that sold for $450k back in 2004 selling for as low as $150-$200k today!  From townhomes to detached bungalows, there are some unbelievable deals out there right now.  No wonder this is where all the activity is!

North San Diego County Real Estate Sales

Public officials and news commentators often complain about how we Californians are too in love with our cars to use public transportation.  While I agree we are fairly addicted to our own personal set of wheels, I am certainly willing and would be happy to take a bus or train from time to time and avoid sitting in traffic.

The problem is, the schedules and routes available leave a lot to be desired, and I often have no choice but to drive myself.

Take the day before yesterday, for example.  I thought it would be a fun outing for my family (my husband, my 2 year old boy and my 4 year old girl) to head to downtown San Diego from our north county beachside community, Cardiff-by-the-Sea.  It’s only a 20 minute drive, but I thought part of the fun would be to take the commuter train “The Coaster” down there and back. 

(Buses weren’t an option unless we were willing to transfer 3 times and spend our entire day just on getting there.)  So, I went online and looked up the Coaster schedule – NOT a single train on Sundays!  I guess it’s only for commuters – well, only for M-F commuters… 

So then I checked Amtrak- I know I’ve often had to sit and wait for passing trains on a Sunday, so, I think to myself, there must be plenty of trains scheduled throughout the day.  Well, there were several options – can’t complain there.  Almost one train an hour.

The shocker was the fee - they charge $18 round trip for 1 adult!  My 4 year old could go at half fare, and the little one was free, so our total came to $45 – just to go 20 minutes down the coast.  Had the Coaster been available it would have cost us $24 total – better, but still hardly what one would expect after living in a city like New York, where a 20 minute ride costs a few bucks…  No wonder people drive themselves.