Our old friend Duane LeGate is quoted in this CNN Money report:Lenders are taking much longer than necessary to approve short sales, according to Duane LeGate, of House Buyers Network, a short sale specialist.
...
"There was a much greater chance of success with these in the past," said LeGate
...
Coldwell Banker CEO Jim Gillespie agrees that short sales are taking too long to complete. And he speaks from firsthand experience; a short-sale offer he made on a house in Marin County, Calif. in late fall didn't win approval until April.
There's a difference between deliberate speed and what we are seeing now with the banks. The lenders just plain old do not want to take their medicine making the illness all that much worse.
[Hat Tip to a long time reader.]
11 comments:
First thing that came to mind with the Duane mention: Is he still in touch with G.?
Duane LeGate, still full of hate! ;-)
Remember when he offered me a $6,000/mo job, and I waffled and wavered until he gave up on me??
Remember when he offered me $20,000 for the blog, and I waffled some more??
Remember when he treated me and my toilet scrubbing ex-wife to dinner, and I demanded the beluga caviar?
Good times... and since I'm newly single again, I may as well remind him: Duane LeGate, I'm no longer straight. ;-)
I would agree that the banks have been dragging their feet on short sales (and foreclosures, and cutting prices on REOs), and are essentially in denial, but at some level, they're almost certainly swamped. As Tanta has pointed out (ad nauseum), the banks simply do not have the staff on hand to deal with the volume of loss mitigation efforts that they need to work through. But delaying, of course, will only make things worse.
We just haven't seen capitulation from any significant number of banks. When they start putting entire REO inventories up at no-reserve auctions, we'll know we've hit the capitulation point--and we will be that much closer to the bottom. But we're not there yet.
Rob, any relation?
"Big Boy Bandit" Busted With The Loot
...police arrested on Thursday the man whom the FBI dubbed the "Big Boy Bandit"
...Mr Cote, 50... was armed with a large semi-automatic handgun, dark in color... described as a white male, in his fifties, weighing over 250 pounds and about 6'2" to 6'5" tall. During his heists, he wore a hat, including colorful golf caps and panama-jack type brimmed hats. He also wore large sunglasses.
dood,
OMG, my brother has really let himself go. Just kidding. No relation. Good laugh tho.
PV,
Tanta is smart and informed but a little too inside to see some of the bigger picture. The banks are understaffed because the banks don't want to staff up to needs based reality anymore than they want to mark to market. The other problem with understaffing is the false signal it gives borrowers. Three, four, seven months go by with no action and pretty soon everybody catches on and stops paying as well.
I miss the Snowflake vs Foghorn verbal fisticuffs.
he he he
Glad to see a little poke in the ribs is still well-received.
Also, glad to see the Dawg apparently back to your usual irascible self!
And as to LM, I agree -- seeing snowflake and Foghorn in some dueling words would be terrific, but our l'il Murseboi seems to be buttoned up tighter than G's jeans these days...
The boy did have a way with words. I shamelessly stole this quote from the Hosuing Panic Blog:
"The stuff I did is technically mortgage fraud, but it's not officially called that until someone prosecutes me and proves that that is indeed mortgage fraud"
- Casey Serin, June 2007
OT, but for those who missed the latest on Richardson: She defaulted a total of eight times on three properties!
Maybe she is the Real(tm) MOCHA...
Oh, BTW, like most CR readers I added a Zero or two to my annual income and such in the Reader Survey ;).
@ Akubi:
Did you add a zero or two to your driveway length too?
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