Of course the process is messed up. So is the REO process. We all know that short sale listing frequently have unrealistically low pricing. I see properties listed low, as short sales, that are going to escrow quickly. I think that is probably good, and an improvement. The last time around(in the nineties) short sales got better. Of course those situations were not as complicated as today, with multiple seconds etc., but it can get better. If what I am seeing holds up it has gotten better in my view.
I don’t understand why those other than the people who might believe that the majority of these are fraud, would not think that was good? These sales, plus the fraud cases if they are fraud are driving comps down. I think that is good. Also I believe patient buyer will benefit from the problems in the long run if they target distressed property. That is not to say it isn’t dissapointing to see the waste of tax payer money and some active buyers efforts but there are other ways to look at it. Some of the best deals are had with short sales.
We are just closing an REO for 20% under list. The listing agent didn’t even bother to lower the list price to try to incite better offers in the two months that we waited for an answer. I never met the listing agent before. The incompetence or taking the path of least resistance benefited my responsible, tax paying, buyer.So did our willingness to put up with the BS.
