Insane Bank Practices

Insane Bank Practices

Banks are holding the Real Estate industry hostage and have been since the market crash.  One of the manifestation of how the Tail is Wagging the Dog is absurd valuations as part of our San Jose Short Sale Process.   As you are aware, banks use Broker Price Opinions (BPO), not formal appraisals to determine value.  And often times the Broker/Agent sent to complete a BPO order is not from the immediate area and they are unaware of the local market dynamics.   So, they typically over-price the property which creates challenges to marketing a Short Sale property.  

This leads to protracted delays in marketing the Short Sale Listing since no buyer is going to over-pay for a California property just because an Asset Manager who lives in Ohio think the property should be sold as a higher price.   Some banks do allow for challenges to the Valuations, but that also adds another delay of more than a week to the Short Sale process which is frustrating for buyers and sellers since it creates uncertainty.  

But perhaps we have no one but ourselves to blame to allow the Banks and Asset Management companies to completely reduce us to gophers!  This is akin to what the HMOs  have done to the delivery of the Health Care where the doctors and medical professional are hostage to the insurance companies and their middle men.   There are bounty of other examples on how the banks are holding the Real Estate industry hostage from controlling and dictating fees, commission to valuations.   In case of fees, banks were offering $75 for biggest challenges for Short Sales these days is the un-predictable valuations since Short Sale Listing Agents are unable to predict the value that a bank will assign to a property as part of a negotiations.   

If you would like any help with your dysfunctional relationship with your bank or don’t want to talk to them anymore Contact Us since we speak their language.

[maxbutton id=”2″]

Enhanced by Zemanta