Are big banks the enemy of agents? The US Government’s Federal Housing Finance Agency (FHFA) seems to think so, suing 17 major banks for mortgage fraud. Below is the observation of a reader who emails us his experience on how banks are taking business out of the hands of very qualified local agents. This frustrated agent suggests that banks are helping prolong the poor housing market. Do you agree?
Today I got word of another agent in our area losing their home to foreclosure. It makes me so mad because the banks are helping to further cause foreclosures in our area and I am sure everywhere in the nation. And lets be honest, they aren’t hurting…….not the big banks! But we, the little guys who bailed them out, are!
In our MLS we have 944 registered agents. Last year we had a total of 1410 sales. This year we have to date 844 sales. That is not a lot of sales per agent on average. 2010 was 1.49 per agent and this year it is less than 1 so far.
Another way we see the banks perpetuating the downfall of our housing and real estate market is by taking the business away from our area. They hire out-of-area agents who do not know our market, do not know our disclosures and are difficult to reach, to sell their REO inventory. They then want the buyer to use their “out-of-area” title and closing companies with incentives to do so by offering to pay the costs. This is putting more and more local agents and affiliates out of business.
What can we do to stop the banks from reaping further record breaking profits while putting Realtors and their affiliates out of business?
I have also heard that the banks get further subsidies if they foreclose on a house. If this is true no wonder the success rate of short sales is so low. What can we, as Realtors, do to stop these practices?