Real Estate and the Banking Industry......

Good morning from the front porch....writing this while viewing the ocean from the front porch...on the Santa Rosa Plateau.....

The local (Southern California area) real estate market is in uncharted territory. Perhaps the entire country as well. As I write this morning, I am waiting to get word about the closing on a transaction that I first started working on about 60 days ago. It's a purchase of a home for two Marines in the San Diego area that are involved in an officer commissioning program. This should have been an "easy" transaction, these two Marines have excellent credit, sufficient income (and obviously very secure income, as active duty Marines, with long term contracts). This particular transaction involves what we call a "standard sale", which is rare these days, as opposed to an REO sale (Real Estate Owned) ..which means a Bank owned property obtained through foreclosure). Since it is a standard sale, the progression of the transaction has been much more expedient than those involving REO properties. YET, the bank making the loan for these Marines has been VERY difficult to satisfy. The Banking industry certainly needs HELP...and I don't mean financial help.....the lack of effective management at all levels is quite obvious.

On another note, the process these days of selling REO properties is even more complicated....the selling Banks, just came seem to figure out how to market properties theve foreclosed on, even to the point of figuring out how to take the money on an expedient basis.....

more coming later on this subject....please stay tuned...

David