Banks Need to Hire More Loan Officers

Posted by: Chris Palmeri on June 26, 2009

vegas house.JPG


Are banks overwhelmed and understaffed for all the work coming out of the housing bust? On June 24, Ciitgroup said it was temporarily suspending new loans brought to them by independent mortgage brokers as it seeks to fix “quality control” issues regarding loan documentation. Rob Jenson, a real estate agent with the Jenson Group in Las Vegas says he’s been trying for eight months to get Bank of America to approve the sale of house for less than the loan amount, a so-called short sale that banks say they are working more diligently to accommodate. “It’s insane,” Jenson says. “It’s getting worse.”

The house Jenson is having problems selling was originally listed for $795,000 in November. It’s a five bedroom, 4,500 square foot home in the Vegas suburb of Summerlin. Jenson immediately got a full-price, all-cash offer which he submitted to the bank late last year. “It took two to three weeks to get a workout negotiator,” he says. “Then they order an appraisal, additional documents from the seller.” Two months later the bank said okay to $795,000, but by then the buyer had moved on.

That started the process all over again. Jenson brought in another buyer, but this one needed to get a loan. By then the house had fallen in value. The property appraised at only $747,000 and the buyer couldn’t get a mortgage for the higher purchase price.

Jenson said the bank negotiator he’s been dealing with said she’s got 145 files that she is working on at once. “Bank could create some jobs,” a frustrated Jenson says. “They should hire more negotiators.”

Reader Comments

Raj

June 26, 2009 5:00 PM

Good site for Real Estate People.
Boise real estate

Clare

June 29, 2009 10:26 AM

I think banks need to be more aware of their customers, banks do tend to think of their bottom line figure which in this economic climate is important. I think the important thing to remember is that any time you want to sell property you should be aware of the pitfalls that can be put in place by banks, the property investor and your lawyer

Prohome Income

June 30, 2009 6:25 AM

The above picture of the house is really fantastic... Now a days banks giving lot of loan for the houses.. They can make money by the means of the houses selling and buying...

Pro Home Income

Brock Harris

June 30, 2009 9:04 PM

Eight months? He's a piker. Just closed one after 13 months of working with Bank of America and Indymac holding two separate loans. It's a joke. I meet with clients who want to short sale their house and ask how long until they have to move. When I say "a year", they can't believe it.

Dwight

July 3, 2009 2:02 AM

The listing is a short sale. The description of the property on redfin.com lists things that are not there. The windows are not double pane and the kitchen cabinets may have been maple but they're painted white now. The listing also promises a home warranty.
My broker tells me short sales are usually done "as is" and that I should not expect the bank to fix or replace anything on the property. Is that true?

Riick

July 19, 2009 11:27 PM

[quote] My broker tells me short sales are usually done "as is" and that I should not expect the bank to fix or replace anything on the property. Is that true? [/quote]

In a word.. YES.
What they know about the property is close to nothing, and they don't want to know more. Take it or leave it.

Louis Bentus Jnr

August 2, 2009 3:28 PM

We give out loan to private companies,individuals,good investor's or business person's who are interested in this offer.Difficult to finance property? We can help!

Loans available for:Homes, Mobile Homes,Land, Commercial,Personal etc

Interested person's should reply via our E-mail Address:bentusfinancier@gmail.com

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About

BusinessWeek editors Chris Palmeri, Prashant Gopal and Peter Coy chronicle the highs and lows of the housing and mortgage markets on their Hot Property blog. In print and online, the Hot Property team first wrote about the potential downside of lenders pushing riskier, "option ARM" mortgages and the rise in mortgage fraud back in 2005—well ahead of many other media outlets. In 2008, Hot Property bloggers finished #1 in a ranking of the world's top 100 "most powerful property people" by the British real estate website Global edge. Hot Property was named among the 25 most influential real estate blogs of 2007 by Inman News.

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