Do you think they have any clue??

Question

The whole process that the servicers put a realtor, mortgage agent and attorneys through to get a short sale done is next to impossible.  I have heard more then a few times, a few times from the servcer themselves, that they dont care because they are a billion dollar company.  Ever heard of "death by paper cuts?"

A deal I presented in the past.  Mortgge was $575,000, offer and BPO were $405,000, they took a pass.  5 amonths later, after the foreclosure, property is listed for $275,000.  They were all too willing to say no, just to jump past me, and list it for $130,000 less?  I don't get it.

I truely believe we are just still getting under way on this mess.  There are far too many homes still in process right now which have not hit the market yet, and many more which still have not even started down the path towards defaulting, which surely will.

Paul Cordero · Answer

I feel your pain Andrew,  As soon as I saw underwriters ripping apart my 70% deals with 700+ Ficos and Assets...I decided that mortgage was not going to pay the bills for a while. I decided to take a salaried position in the Banks REO dept.

Andrew Meegan · Answer

I have a feeling that in the very near future that we will be seeing so many REOs hitting the market that the only way they will sell is in bulk only.  We are overstocked right now.  Whats going to happen when 1mil+ more homes hit the market between now and December?

Unfortunatley, the last 3 pruchase mortgages I wrote were like giving birth sideways to my first couple loans.  I needed to get a character reference for one loan, a reciept for the purchase of an engagement ring, for another to prove the couple was engaged, and income asset docs for a stated stated deal.  All 3 of these loans were subjected to waiting almost 3 weeks in the que, just waiting to get to underwriting.  Its a mess being a person trying to get a mortgage these days.

Paul Cordero · Answer

Andrew,  I believe you meant to post this in the REO not Bulk REO forum.

But to answer your questions, that servicing company wont be servicing very long with decisions like that.  I would have approved your offer and you would have been closing 30 days later, but then again I am in REO not Loss Mitt.