The previous video acknowledged a good realtor doing it the right way, but unfortunately there are still plenty of bad apples – and they are allowed to run loose. What could happen?
The Attorney General could get involved, and convict some of the offenders of defrauding the banks. If we had just a couple of perp walks, it would go a long way to solving the problem, because realtors don’t even realize that it’s wrong when they see so many others doing the same thing.
Or banks could pull the plug on short sales, but they would have to believe that foreclosing was the preferred option. Foreclosures sell for what the open market will bear, whether at a trustee sale or REO listing. Short sales rarely do, because there are so many conflicting forces at work – sellers enjoying the free rent, and agents drooling at the thought of hoarding commissions.
In a rising market, banks would be better off foreclosing and holding properties for months or years, rather than having guys like this rob them today: