In today’s Covington real estate market, I’ve ceased being amazed at the attitude of the FDIC, some of our large banks, and alleged premiere mortgage companies. They are continuing to do more to hamper a rapid recovery of our housing industry than they are to facilitate it. And, they don’t really seem to care.
There are exceptions, naturally. But, they are few.
Several of our “local” banks, strapped with significant numbers of foreclosures, are making genuine efforts to reduce their inventory and bring things back to a more normalized market. They have assigned special management teams to work on getting the foreclosed homes off their books. They’re advertising, offering special agent incentives, good interest rates and special financing packages to qualified buyers. Most importantly, they always are available to talk with agents. But, the “big guys” are another story…
In the past couple of weeks, my associates and I have been involved in two situations which have become all too typical. One involves the FDIC, and the other a large bank/mortgage provider, who shall go unnamed. I won’t even disclose the names of the horses which pull their stagecoach.
In the first situation, a local bank foreclosed on a number of new homes in an upscale Covington neighborhood and was making every effort to sell the homes. In fact, they had several under contract when the FDIC stepped in and assumed control of the others. My associate had a qualified, pre-approved buyer who had found one of the remaining homes to be their “dream.” But when the agent called the local bank to present her offer, she was told that the FDIC had assumed control of the remaining homes, there was no one she could talk to at the FDIC to make an offer, and even if she called and left messages, no one would call her back. “The FDIC has its own procedures for dealing with its inventory,” she was told, “and don’t seem to be in a hurry.” The homes may be re-listed with an agent in four to six months, but until that time, there’s nothing you can do.” The result… a confused, frustrated, inconvenienced buyer, a frustrated Realtor®, and another new home remaining in inventory, deteriorating, blighting the neighborhood and ready to be vandalized.
In the second situation, my associate made an offer on a foreclosed home listed for $256,000. Her buyer's offer of $205,000 was the highest of three which came in at essentially the same time. However, several days later, the listing agent called to tell her that the asset manager for the mortgage company which owned the home had decided they would get more for it by selling it at auction. Last weekend, my associate bought the home for her client at absolute auction for $140,000. My associate had a very happy, satisfied client, but she got paid much less than her effort was worth. And, I hope the asset manager got thrown from the stagecoach. He probably didn't...
But, I’ve ceased to be amazed!
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