OK, we were denied again on our offer to buy the Countrywide foreclosure. I was not surprised, I'm sure Neil will be. His expectations are different than mine.
Here's where my irritation comes in. I know at least one attorney reads my blog, so maybe someone can tell me whether or not there is a class action lawsuit in this whole mess?
As a taxpayer, I am collectively on the hook for at least $700 B in financial bailout for the lending system. Banks sitting on foreclosed and foreclosing properties are the very reason why we had to rush to pass the bailout package this fall.
Yet, apparently these same banks have absolutely NO INCENTIVE to deal when it comes to selling these properties to qualified buyers. Not only are the representatives who handle the REO office stupid (read my post below about needing the paperwork to match exactly), they are also unmotivated. In our case, we got no counter offer. We got no correspondence whatsoever. We are one of the very few buyers out there right now who can close quickly with a 20% down payment without needing to sell our other residence first. One would think that a mortgage company would want to deal with us? Apparently not!
So let me get this straight...I had to bail out these companies, but they don't have to do anything on their end to rectify the situation with regards to all of the impaired assets on their books? I would think the bailout makes me part owner in their business. If it weren't for my tax dollars (and everyone else's), they would be out of business, bankrupt, kaput!
I know it will sound like sour grapes, that I'm just bitter about our deal not working out. Honestly, I've heard this exact same scenario play out so many times in the past year or two, I can't even count it all on two hands. It doesn't seem to matter what bank owns the loan, they are just not dealing on their short sales and foreclosed properties.
These banks don't seem to understand that the value of these homes has dropped. They are no longer worth what the bank foreclosed them for! They need to write off the loss and move forward with good loans. Loans to people like me and Neil. People with good solid jobs, cash savings, assets in investments, and no contingencies!
OK, now I need to find an attorney, I'm all riled up.
12/1/08
Is there a lawsuit in here somewhere?
By Heather on 12/01/2008
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1 comments:
LOL, I know nothing about class actions, but I imagine yours wouldn't be valid simply because you can't sue the government. :)
Here is the thing: the lender you are attempting to buy the property from is in Southern California. You would think this would work to your advantage, but based on what I have seen in the market the last couple of months it isn't. Why? Because the REOs and Short Sales are moving FAST around here. They are taking money from the highest bidder. People who go in 30 under asking are not getting a counterdemand because someone else went in the same week and offered 20 under. The bidding war is still going strong in the REO/Short Sale market around here and *hopefully* that is indiciative of the fact that we will bounce back out of this pricing slump quickly. There is still a housing shortage in desirable neighborhoods in Southern California. People a in bidding wars to get into those neighborhoods "cheap" which is what the REOs/Short Sales seem to be. In actuality, you can negotiate with a desparate buyer much more than you can with the banks.
Countrywide is likely just holding out for a better offer. They don't have the time or resources to negotiate these things. If you really want the house, I would put up a range and see if they bite.
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