Is anyone in the phoenix area going through a foreclosure with bank of america?

[cmist]

Originally Posted by Rick Lee

In the case that began this thread, it certainly doesn't appear to be the bank's fault the owner decided to walk. So how has the bank been propped up by a bad business decision, other than for lending money to someone who later decided to walk? Perhaps the bank only lent an 80% loan to value and the owner racked up another 20-30% HELOC from a different bank. Not the first lienholder's fault. I have no sympathy for banks who make bad decisions and refuse to move on short sales that could make everyone a lot happier than foreclosure. But let's face reality here. Some of these banks are getting 1000 new short sale packages PER DAY. They just aren't staffed to handle this kind of stuff and they stand no chance of making money by hiring more people to deal with it. The best case scenario is that they lose less money, not make anything.

No, I'm referring to the worst offenders have received TARP money. They know they are "too big to fail" and therefore have little motivation or urgency to worry about their "bottom line". Why should a bank care when they have such protection on their side?

They have the same home to sell whether the person's credit is saved, or if they foreclose. Part of the reason so many homes are underwater is due to their own fire sale prices that caused comps to get so low. Holding on to them for extended periods of time while prices slide lower surely doesn't help either.

The low sales prices have now affected more than just those who bought at the peak, or those who had a funky loan.

I think in the best interest of getting over this quickly, they should do whatever it takes to burn through them. If they need $$ from the government again, whats another bailout after so many previous ones at this point? The market has no chance of correcting as long its continuing to get flooded by backlogged short sales and foreclosures.

The money would be better spent setting up a system to get properties sold at todays prices, rather than selling today's short sale next year as a foreclosure at who knows what price.

[Discovery1]

Originally Posted by cmist

No, I'm referring to the worst offenders have received TARP money. They know they are "too big to fail" and therefore have little motivation or urgency to worry about their "bottom line". Why should a bank care when they have such protection on their side?

They have the same home to sell whether the person's credit is saved, or if they foreclose. Part of the reason so many homes are underwater is due to their own fire sale prices that caused comps to get so low. Holding on to them for extended periods of time while prices slide lower surely doesn't help either.

The low sales prices have now affected more than just those who bought at the peak, or those who had a funky loan.

I think in the best interest of getting over this quickly, they should do whatever it takes to burn through them. If they need $$ from the government again, whats another bailout after so many previous ones at this point? The market has no chance of correcting as long its continuing to get flooded by backlogged short sales and foreclosures.

The money would be better spent setting up a system to get properties sold at todays prices, rather than selling today's short sale next year as a foreclosure at who knows what price.

I really don't think the Gov had any other option other than saved big banks late last year. Just imagine what going to happen to this world if CITI, BOA went under.