Wednesday, 25 January 2012
I am seeing more and more articles touting the good news: "The recent increase in short sales is the result of banks finally recognizing the problem and deciding its time to “clear out some of the inventory” of underwater mortgages."
Having completed 37 short sales, I doubt that Bank of America, Wells Fargo, Chase, et al, have suddenly come to their senses and realized that short sales are in the best financial interest of the lender.
It's natural to think of institutions as having human characteristics. Like a brain. Many do the same thing with G-d -- we talk about what He sees, what He knows, what He wants, what He would say. But there is no omniscient giant brain at the helm of Bank of America, thinking about the homeowners & the stockholders & the employees & the public and what would be best for all. Instead, they're a gorilla-like bureaucracy, manned by employees who show up & work their pay plans. Has Bank of America come to its senses?
Nope.
There is no "sense". They're approving short sales because the negative publicity regarding their screw-ups is killing them. It hurts the stock. It hurts their ability to lobby Washington for favorable legislation. Nothing changed until this mess started to affect the pay plans of the Top Dogs. People started giving those guys ##it. At the country club. At the car wash. At the water cooler. And they're not used to people giving them ##it. They're used to having their ###es kissed. They do not see the value of short sales to their banks, investors, clients, etc. They see the value of short sales TO THEMSELVES. Or, rather, the value of publicity that makes it appear they are trying to help homeowners, investors, the economy, etc. Intruth, they just want everyone to shut up.
I will never drink their Koolaid.
