Banks ‘get it,’ they just don’t respond

Editor,

This is in response to Bruce Taylor’s, MLS Realty Inc. Jacksonville, Deerfield Beach, letter to the editor on short sales.

Here is a pet peeve of mine: I do believe banks “GET IT.” I personally believe that banks are trying to stabilize the market for their benefit – to secure their cracking financial foundations.

This is why no one is assigned to the short sale cases. They are allowing houses to go through “the process” to become a REO. I believe banks withhold assigning short sale files to case managers, and perhaps even reject “spot on” BPOs, produced by licensed Realtors, that come to the bank lower than what the bank wants to admit that the property is worth. Hence, the house moves down the line to the REO status.

This is why the banks hold onto the corporate-owned (bank-owned REO) property – to build a firm foundation for their own weakness and instability. Banks are protecting their bottom line assets. Once the market is stable, you’ll see a push for the banks to move these properties through the system at a higher price than they should be sold for – closer to dollar-for-dollar rather than pennies-on-the-dollar.

Just as disturbing: These banks don’t want to hire the manpower to handle the volume of accounts that going “belly up.” This step takes time, money and lots of training.

Short sales are a process similar to getting something passed in Congress – Nowhere else would there such a highly negotiable transaction treated with such disregard for the people involved, i.e., sellers/buyers/Realtors.

Therefore, banks should not be in the real estate business. They should be in the business of banking – ensuring that the public’s money is healthy by securing savings accounts, loans, mortgages and other regulated financial instruments for the betterment of their customers (YOU AND ME).

What has happened to the banking system is the product of pure GREED, (the pendulum out of balance with the ideals of capitalism) and it is almost unspeakable. This is my opinion but backed by some very serious articles currently being written (see the Washington Post and others). I could be wrong.

Sondra Sparapani
Premier Properties Realty Group Inc.
St Augustine