[quote=bearishgurl]
There’s NO NEED to make a 15-page report or even get an appraisal. At that point, an appraisal is moot. The aggrieved lender’s only focus should be recovery of the asset as soon as allowable by law. Even if it takes Sheriff’s deputies setting the trustor’s belongings on the sidewalk and changing the locks after the trustees’ sale.
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There is a reason to get an accurate estimate of value. Do they put in a credit bid for the full amount of the loan? Should they let it go at auction for some amount less than the full amount of the loan?
But overall, you’re right. It isn’t complicated. Yet they still don’t do it. Why is that? There is not now, nor has there ever been any motivation for letting any individual asset rot in delinquent status. There are those that have argued that the delays as a whole have been part of some sort of grand scheme to manipulate the market to maintain stability, and create a market where foreclosures would be systematically released into the market. The hidden inventory that so many expected to eventually hit the market. I don’t buy it. That inventory has never showed up. I think they (the lenders and loan servicers) really are that bad at managing distressed assets.
