Brief Revenue - Some Distressing New Developments

As a Realtor, I am still surprised at how some communities stay awash in troubled attributes, be they short sales or foreclosed properties. Obviously, it is not as surprising, specially when you realize that virtually any property built or sold after 2004 will probably be worth less nowadays, than it was then, at least in the Phoenix area. Many subdivisions that were integrated 2006 and 2007 have virtually no original owners. Most have just walked away, as prices halved, if they will make the payments, or not. That is a subject for another day, although I'll permit that the economy likely harm most of them, while another large element of customers took on debt they could not necessarily manage, in the hope of continued admiration that failed to appear. All the while, aided and abetted by insatiable bankers.Recently, I was dealing with an elderly couple who were looking to downsize right into a newer home. As usual, we ran to the problem that lots of properties available were short sales. They'd neither enough time, nor the interest, to begin on what can be described as a long process, so we concentrated on REOs and normal sales.However, though skimming through some short income, I was amazed by the conditions of numerous retailers. I'm used to a retailer demanding the buyer qualify with a pre-selected bank, and I'm used to not complying with that request. I see no benefit in my customer divulging almost all their personal financial data with a lackey at a random bank. As I explained, I was astonished by a record broker that disclosed that the short was being discussed by a unique business and that the customer was necessary to pay the $4,000 cost connected with this support. That fee coming along with the 6% listing fee that is traditional within our industry. Then, and at least they shared it, they revealed on the business organization disclosure, that the bust bargaining group was, in reality, a subsidiary of their own property firm. All this on a $200,000 list, which means the additional pressure on the client was 2% of the asking price. Here is a newsflash! If you are struggling to negotiate short sales, don't recognize results that require them!In another CA Short Sale offering, the lister revealed that the lender may, or may not, at its discretion, impose a supplementary 1% payment on the prospective consumer. Guru! Punish the very individual who gets you from the mess that you were, at the very least, partly in charge of creating. Many of these banks are as useful as a door on a submarine.It will get worse. The ill-advised first-time house buyers tax credit of $8,000 is likely to be expiring at the end of June. Observe how many well-intentioned and willing would-be purchasers get entangled in the net of indecision that plagues most banks and their alleged conclusion makers.Watch how desperately our elected representatives may scramble to re-fix the resolve that they caused to be damaged in the very first place. It's gonna be described as a bumpy ride.