sdr/SDR, how can this not be fraud???

[CA renter]

[quote=sdrealtor]ditto SD R,
I dont see much in the way of fraud attempts either. Mostly greedy agents.

sdr[/quote]

If the listing agent is claiming that it’s the “highest and best” offer to the bank, yet is failing to market the property or even accept any market-based offers, I call that fraud.

They are defrauding the banks — which just so happen to be propped up by the taxpayers right now, and that makes it more egregious than ever.

Sorry, sdr, but it does not require a rocket scientist to determine what the “highest and best” offer is.

A bank is just as capable of determining market-based pricing, if not more capable. They did just fine with their appraisals before the growth of the mortgage brokerage industry. I’d like to see more accountability in the process.

[drboom]

[quote=CA renter]
Sorry, sdr, but it does not require a rocket scientist to determine what the “highest and best” offer is.

A bank is just as capable of determining market-based pricing, if not more capable. They did just fine with their appraisals before the growth of the mortgage brokerage industry. I’d like to see more accountability in the process.[/quote]

The banks just aren’t set up to look at all the offers, let alone analyze all of them. They can’t even deal with the single offers they’re receiving now.

Anyway, what is “highest and best”? I’m currently in escrow on a short sale. Our offer was $8-10k lower than the highest dollar offer–sale price is around $240k, so it’s a significant percentage. But the “higher” offers included some combination of FHA, non-“as is” clauses, etc., which the listing agent and the seller had to sort through. Our offer had almost no strings beyond a loan contingency, and we convinced them (with high FICO scores and verified down payment funds) that we would be able to perform if our offer was accepted. Again, the seller had to weigh all of this and keep in mind that the bank might reject the offer if the price was too low. This last item is what helps keep the seller honest: they want the short sale to go through.

Would a bank be able to sort all this out without incurring a huge cost? I doubt it, and why should they if they are getting the service for free? Unless there is a huge amount of fraud, the banks are better off with the status quo.

[drboom]

[quote=CA renter]
Sorry, sdr, but it does not require a rocket scientist to determine what the “highest and best” offer is.

A bank is just as capable of determining market-based pricing, if not more capable. They did just fine with their appraisals before the growth of the mortgage brokerage industry. I’d like to see more accountability in the process.[/quote]

The banks just aren’t set up to look at all the offers, let alone analyze all of them. They can’t even deal with the single offers they’re receiving now.

Anyway, what is “highest and best”? I’m currently in escrow on a short sale. Our offer was $8-10k lower than the highest dollar offer–sale price is around $240k, so it’s a significant percentage. But the “higher” offers included some combination of FHA, non-“as is” clauses, etc., which the listing agent and the seller had to sort through. Our offer had almost no strings beyond a loan contingency, and we convinced them (with high FICO scores and verified down payment funds) that we would be able to perform if our offer was accepted. Again, the seller had to weigh all of this and keep in mind that the bank might reject the offer if the price was too low. This last item is what helps keep the seller honest: they want the short sale to go through.

Would a bank be able to sort all this out without incurring a huge cost? I doubt it, and why should they if they are getting the service for free? Unless there is a huge amount of fraud, the banks are better off with the status quo.

[drboom]

[quote=CA renter]
Sorry, sdr, but it does not require a rocket scientist to determine what the “highest and best” offer is.

A bank is just as capable of determining market-based pricing, if not more capable. They did just fine with their appraisals before the growth of the mortgage brokerage industry. I’d like to see more accountability in the process.[/quote]

The banks just aren’t set up to look at all the offers, let alone analyze all of them. They can’t even deal with the single offers they’re receiving now.

Anyway, what is “highest and best”? I’m currently in escrow on a short sale. Our offer was $8-10k lower than the highest dollar offer–sale price is around $240k, so it’s a significant percentage. But the “higher” offers included some combination of FHA, non-“as is” clauses, etc., which the listing agent and the seller had to sort through. Our offer had almost no strings beyond a loan contingency, and we convinced them (with high FICO scores and verified down payment funds) that we would be able to perform if our offer was accepted. Again, the seller had to weigh all of this and keep in mind that the bank might reject the offer if the price was too low. This last item is what helps keep the seller honest: they want the short sale to go through.

Would a bank be able to sort all this out without incurring a huge cost? I doubt it, and why should they if they are getting the service for free? Unless there is a huge amount of fraud, the banks are better off with the status quo.

[drboom]

[quote=CA renter]
Sorry, sdr, but it does not require a rocket scientist to determine what the “highest and best” offer is.

A bank is just as capable of determining market-based pricing, if not more capable. They did just fine with their appraisals before the growth of the mortgage brokerage industry. I’d like to see more accountability in the process.[/quote]

The banks just aren’t set up to look at all the offers, let alone analyze all of them. They can’t even deal with the single offers they’re receiving now.

Anyway, what is “highest and best”? I’m currently in escrow on a short sale. Our offer was $8-10k lower than the highest dollar offer–sale price is around $240k, so it’s a significant percentage. But the “higher” offers included some combination of FHA, non-“as is” clauses, etc., which the listing agent and the seller had to sort through. Our offer had almost no strings beyond a loan contingency, and we convinced them (with high FICO scores and verified down payment funds) that we would be able to perform if our offer was accepted. Again, the seller had to weigh all of this and keep in mind that the bank might reject the offer if the price was too low. This last item is what helps keep the seller honest: they want the short sale to go through.

Would a bank be able to sort all this out without incurring a huge cost? I doubt it, and why should they if they are getting the service for free? Unless there is a huge amount of fraud, the banks are better off with the status quo.

[drboom]

[quote=CA renter]
Sorry, sdr, but it does not require a rocket scientist to determine what the “highest and best” offer is.

A bank is just as capable of determining market-based pricing, if not more capable. They did just fine with their appraisals before the growth of the mortgage brokerage industry. I’d like to see more accountability in the process.[/quote]

The banks just aren’t set up to look at all the offers, let alone analyze all of them. They can’t even deal with the single offers they’re receiving now.

Anyway, what is “highest and best”? I’m currently in escrow on a short sale. Our offer was $8-10k lower than the highest dollar offer–sale price is around $240k, so it’s a significant percentage. But the “higher” offers included some combination of FHA, non-“as is” clauses, etc., which the listing agent and the seller had to sort through. Our offer had almost no strings beyond a loan contingency, and we convinced them (with high FICO scores and verified down payment funds) that we would be able to perform if our offer was accepted. Again, the seller had to weigh all of this and keep in mind that the bank might reject the offer if the price was too low. This last item is what helps keep the seller honest: they want the short sale to go through.

Would a bank be able to sort all this out without incurring a huge cost? I doubt it, and why should they if they are getting the service for free? Unless there is a huge amount of fraud, the banks are better off with the status quo.

[sdrealtor]

Exactly, drboom.

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%.

[sdrealtor]

Exactly, drboom.

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%.

[sdrealtor]

Exactly, drboom.

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%.

[sdrealtor]

Exactly, drboom.

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%.

[sdrealtor]

Exactly, drboom.

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%.

[sdrealtor]

CA R
The one place where we do see the highest and best coming from the banks is on REO’s. I went and looked at about a dozen agents that have done at least 20 REO’s sales. I compared how many times one of the properties they sold in a traditional sale in the last 2 years had both ends in their brokerage with how many times their brokerage had both ends of an REO transaction. IN EVERY SINGLE CASE, they or someone that worked for them seemed to get both sides of the REO transactions at a far greater percentage. I’m sure they could explain every single case but the statisitics do not lie. I want to be clear. IT WAS IN EVERY SINGLE CASE including agents you would likely far beyond reproach if you know what I am getting at.

The REO agents are sitting in the garden of eden and the temptation to take a bite of the apple occassionally must be too great even for the best of them.

PS I have been closed a few dozen short sale transactions and could have taken both sides many times. I have had both sides only once in a closed sale. The buyer was the family of the disabled tenant that resided in the who knowingly paid above market to make sure the tenant would never get displaced. No one else would have paid what they paid. I did have one more in escrow with what was the clearly the best buyer that came to the table after a few months on the market but that buyer ultimately walked.

[sdrealtor]

CA R
The one place where we do see the highest and best coming from the banks is on REO’s. I went and looked at about a dozen agents that have done at least 20 REO’s sales. I compared how many times one of the properties they sold in a traditional sale in the last 2 years had both ends in their brokerage with how many times their brokerage had both ends of an REO transaction. IN EVERY SINGLE CASE, they or someone that worked for them seemed to get both sides of the REO transactions at a far greater percentage. I’m sure they could explain every single case but the statisitics do not lie. I want to be clear. IT WAS IN EVERY SINGLE CASE including agents you would likely far beyond reproach if you know what I am getting at.

The REO agents are sitting in the garden of eden and the temptation to take a bite of the apple occassionally must be too great even for the best of them.

PS I have been closed a few dozen short sale transactions and could have taken both sides many times. I have had both sides only once in a closed sale. The buyer was the family of the disabled tenant that resided in the who knowingly paid above market to make sure the tenant would never get displaced. No one else would have paid what they paid. I did have one more in escrow with what was the clearly the best buyer that came to the table after a few months on the market but that buyer ultimately walked.

[sdrealtor]

CA R
The one place where we do see the highest and best coming from the banks is on REO’s. I went and looked at about a dozen agents that have done at least 20 REO’s sales. I compared how many times one of the properties they sold in a traditional sale in the last 2 years had both ends in their brokerage with how many times their brokerage had both ends of an REO transaction. IN EVERY SINGLE CASE, they or someone that worked for them seemed to get both sides of the REO transactions at a far greater percentage. I’m sure they could explain every single case but the statisitics do not lie. I want to be clear. IT WAS IN EVERY SINGLE CASE including agents you would likely far beyond reproach if you know what I am getting at.

The REO agents are sitting in the garden of eden and the temptation to take a bite of the apple occassionally must be too great even for the best of them.

PS I have been closed a few dozen short sale transactions and could have taken both sides many times. I have had both sides only once in a closed sale. The buyer was the family of the disabled tenant that resided in the who knowingly paid above market to make sure the tenant would never get displaced. No one else would have paid what they paid. I did have one more in escrow with what was the clearly the best buyer that came to the table after a few months on the market but that buyer ultimately walked.

[sdrealtor]

CA R
The one place where we do see the highest and best coming from the banks is on REO’s. I went and looked at about a dozen agents that have done at least 20 REO’s sales. I compared how many times one of the properties they sold in a traditional sale in the last 2 years had both ends in their brokerage with how many times their brokerage had both ends of an REO transaction. IN EVERY SINGLE CASE, they or someone that worked for them seemed to get both sides of the REO transactions at a far greater percentage. I’m sure they could explain every single case but the statisitics do not lie. I want to be clear. IT WAS IN EVERY SINGLE CASE including agents you would likely far beyond reproach if you know what I am getting at.

The REO agents are sitting in the garden of eden and the temptation to take a bite of the apple occassionally must be too great even for the best of them.

PS I have been closed a few dozen short sale transactions and could have taken both sides many times. I have had both sides only once in a closed sale. The buyer was the family of the disabled tenant that resided in the who knowingly paid above market to make sure the tenant would never get displaced. No one else would have paid what they paid. I did have one more in escrow with what was the clearly the best buyer that came to the table after a few months on the market but that buyer ultimately walked.

[Author]

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