CA Renter you are very naive. The lenders have enough problems analyzing a single offer. Each of their neogtiators is overwhelemed with about 500 files or more. I cant imagine if we had to present all offers. They would have to increase their staff at least 5 times to handle that and that is being very conservative. From what I can see the lenders are barely capable of tying their own shoes. You give them far too much credit. Additionally, I have never seen a single thing requiring “highest and best” offers on short sales. An offer is presented to the bank and that is that. I have had banks ask for more money but have never heard them ask how many offers there or to go back get highest and best offers. They just say what they will accept.
The level of fraud is far below what would justify increasing their staffing costs by 500%.[/quote]
If I’m naive, it’s only about the lack of competence among the lenders’ employees.
Again, this is NOT rocket science, and dr boom’s example does not negate what I’m saying. If the lenders don’t have employees who are capable of determining the “highest and best” offers, then they should fire their existing staff and hire more competent people.
I stand by my suggestion regarding a **government run and regulated** auction system. Any financial firm that is getting government money/guarantees of any sort should be forced to use the auction site for the sale or purchase of any and all assets. All buyers and sellers would be pre-qualifed and thoroughly screened before they can participate. All transactions would be completely transparent, and every buyer’s/seller’s transactions could be tracked.
Every sale would require that the asset be listed for a minimum number of days (30?), and all of the buyers’ terms would be noted with every bid. At the end of the auction period, the highest and best offer would be submitted — a computer model could offer different ways of calculating a “best offer” (mix of: best price, fewest contingencies, shortest escrow, highest down payment, etc.), and the buyers/sellers would be obligated to complete the transaction.
Almost everything could be automated, and it could be done in an extremely efficient manner, in addition to minimizing the potential for fraud.
