[hasagos1]

The banks can be very frustrating. I have been in the process of buying a foreclosed house since November, and the transaction is still not complete. The bank takes forever to get things done. Its very frustrating.

If I didn’t feel like I was getting a very good deal and didn’t really like the house I would have just walked away out of frustration. I have never in my life seen a situation where the buyer makes me jump through so many hoops just to purchase something. I am sure this dynamic is one of the reasons why foreclosed homes are sold at a discount to everything else – some people probably don’t have the patience to deal with it.

Also what doesn’t make sense to me, is that when the banks delay selling through their own burocratic inefficiencies, they lose money both on the principle value of the house declining, as well as the ongoing taxes and maintenance fees they have to pay on them. When you multiple this across thousands of foreclosures, the sums become huge.

What really makes me angry, is why the government wants to use taxpayer money to bail out the banks. The banks put themselves in this situation in the first place – and the way they are handling their foreclosed houses tells me that some of them need to go out of business in order for others in the market to learn the hard way to be more efficient.

[olecapt]

Originally Posted by hasagos1

The banks can be very frustrating. I have been in the process of buying a foreclosed house since November, and the transaction is still not complete. The bank takes forever to get things done. Its very frustrating.

If I didn’t feel like I was getting a very good deal and didn’t really like the house I would have just walked away out of frustration. I have never in my life seen a situation where the buyer makes me jump through so many hoops just to purchase something. I am sure this dynamic is one of the reasons why foreclosed homes are sold at a discount to everything else – some people probably don’t have the patience to deal with it.

Also what doesn’t make sense to me, is that when the banks delay selling through their own burocratic inefficiencies, they lose money both on the principle value of the house declining, as well as the ongoing taxes and maintenance fees they have to pay on them. When you multiple this across thousands of foreclosures, the sums become huge.

What really makes me angry, is why the government wants to use taxpayer money to bail out the banks. The banks put themselves in this situation in the first place – and the way they are handling their foreclosed houses tells me that some of them need to go out of business in order for others in the market to learn the hard way to be more efficient.

That is actually not the usual pattern. REPOs generally sell in 30 days or less and relatively smoothly. You do have to jump through a hoop or two or three but it is normally a quick transaction. I would suspect the bank had trouble with the title or some such.

Short sales are the difficult one. They have worse hoops to jump through and can take two and three months to get a decision of no.

[ParkTwain]

ReviewJournal.com - Business - MORTGAGE FALLOUT: SKIM SCAM
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...
Hawks said he examined title work on several homes and found that someone had removed an addendum that instructs the title company to issue checks to a third-party limited liability corporation. The document is removed or hidden, either way with same result, he said.

[jfkIII]

They should make a movie and call it 'Swindler's List!'

[olecapt]

Originally Posted by ParkTwain

ReviewJournal.com - Business - MORTGAGE FALLOUT: SKIM SCAM

Interesting but I would note that Smith had to go to San Diego for one of his examples. And the other interesting one was a civil suit and not a criminal investigation.

I look at a whole lot of these numbers and have seen only a couple that were likely not straight. These are such things as a place sold and mortgaged for $550K when the whole tract has been selling under 350K for months. One key is that they almost always are not in the MLS. Another is that they are out of line. Everything is selling at $140 per SF and suddenly a sale at $160 per SF. Sets all my alarms off and I am only lookiing for good comps.

I would think we have and will see a lot of fraud of the quit claim deed sort..."Sell your house to me I will make the payments"...

For the other stuff though you need crooked escrow, title and or appraisers. It happens but it tends to stand out and will almost certainly get a participant sent to jail.

As I said I have seen a few...but I don't see a big problem.

Have to think if there is a search criteria that might easily find these. I think not but I will take a look.

[bumpercar]

ReviewJournal.com - Business - MORTGAGE FALLOUT: SKIM SCAM

"The values of homes have declined dramatically from the overpriced fraudulent inflation that has run rampant in our marketplace the past few years," VanZant said in an article on DSNews.com. "Fraud has absolutely destroyed the market. Without this problem, it wouldn't be near what it is."

[olecapt]

Originally Posted by bumpercar

ReviewJournal.com - Business - MORTGAGE FALLOUT: SKIM SCAM

"The values of homes have declined dramatically from the overpriced fraudulent inflation that has run rampant in our marketplace the past few years," VanZant said in an article on DSNews.com. "Fraud has absolutely destroyed the market. Without this problem, it wouldn't be near what it is."

Van Zant is an RE Agent. Why would you think him an expert on fraud? Sure there is some fraud...but destroyed the market? Only in his mind...

[bumpercar]

Here's another quote from the article you can shadow box with:

"This is like stocks in 2000, so nobody knows what the true value of a home in Las Vegas is right now. That's why nobody's buying," Hawks said."

Originally Posted by olecapt

Van Zant is an RE Agent. Why would you think him an expert on fraud? Sure there is some fraud...but destroyed the market? Only in his mind...

[olecapt]

Originally Posted by bumpercar

Here's another quote from the article you can shadow box with:

"This is like stocks in 2000, so nobody knows what the true value of a home in Las Vegas is right now. That's why nobody's buying," Hawks said."

That is closer to reality. But it has nothing to do with fraud. More correctly nobody believes it is at the bottom yet.

[Positiveone]

To all the current realtors out there. When was the last time you sold a home here in Henderson or Vegas? How often are you yourself getting an actual sale?

Also on average how long does it take for one to sell a home in this market? Expect a year? More? We are in Green Valley. Thanks