[quote=bearishgurl][quote=SK in CV] . . . I think they (the lenders and loan servicers) really are that bad at managing distressed assets.[/quote]

How did they get so bad?

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They were always this bad during RE bubble bursts. I didn’t have any direct knowledge of it during the bust of the early ’80’s, but I was told it was the same. I know it was just as bad with the bust of the late 80’s. I worked pretty closely with a bunch of former RTC asset managers when I did a lot of bankruptcy work in the early 90’s, liquidating lender portfolios. The incompetence in the process is truly incomprehensible.

I don’t think political pressure was ever a meaningful factor, except to the extent it caused some small delays, eventually everything returned to the norm.