It’s Not Your Neighbor’s Fault

When the bubble first burst it was the real estate industry’s fault; the realtors, mortgage brokers and appraisers.  Then it became your fault, your neighbors’ fault, your best friend’s fault.

When a short sale was sent to the bank,  they banks had no idea what to do.  When clients asked me about short sales, I had no idea what to do.  My broker at the time told me to refer the client to a lawyer.  The banks scrambled, hiring thousands of people to answer your calls but not your questions.

Now there are procedures, even laws that have to be followed.  Too bad the banks now think they’re the bees knees; denying short sales because they’re tired of dealing with the file.  Yes, they really do say things like that.  I had one bank rep tell me, “I’ve spent way too much time on this file.  I have them stacked all over my desk and the floor.”  File?  Uhh, excuse me.  That’s someone house you’re talking about.

Banks are not in the business of selling real estate, and we knew it.   It was – and in some cases still is – a disaster to deal with a bank trying to navigate a short sale.

I subscribe to the Niche Report, a mortgage industry magazine on all things loans.  That’s how I found Securitization: How Our Society Changed When We Learned to Turn Lead Into Gold – currently their lead story.  Martin Andelman AKA Mandelman explains in detail how we ended up in the biggest financial disaster of our time.

By the time the movie started the theater was basically full – except the neck breaking seats at the front.  It was two hours of jaw-dropping, gasps and cynical chuckles.   It’s playing at limited times and places but oh so worth the ten bucks.

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