Today, Bloomberg came out with a report summarized with this “Home prices in the U.S. dropped the most on record in the first quarter from a year earlier, led by California and Florida, as banks sold foreclosed properties.” I think this can be avoided at this drastic of a level. Banks are not doing all they can do to stop the foreclosure from happening. An agent in my office today was telling me a story about a property that was being negotiated via short sale. His client put in an offer of 153,000 to take to the bank. Months passed, bank chose not to respond and the property ended up REO. The same client was able to put in an offer on the property in the REO state, and got it accepted for 135K. Kudos to the buyer for getting what they wanted for better than they wanted.
What is it going to take, besides taxpayer money, to get these banks to understand that they benefit by streamlining and putting resources into the short sale process. It will help solidify prices in the market, move inventory, help their troubled clients, and avoid the dreaded foreclosure. See the links to two stories about foreclosures and short sales out today:
Home Prices in U.S. Drop Most on Record in Quarter
Short Sales: Banks Blocking Way Out Of Foreclosure Crisis
