No wonder our banking system is tanking!

[Bob Orts]

As an FYI, the Boyko ruling which was hailed by many homeowners and consumer advocates as a way to stall foreclosures, also ended up stalling short sales and foreclosure sales as well. Now all loans have to adhere to the ruling and that means TIME, lots of TIME. So most lenders even if they want to do something, probably can't at the speed people would think. In the past, something that took 30 days, may now take 120+ days to complete.

The lenders servicing company may not have all their internal ducks in a row so they stall. One common stall tactic is to screw up the power of attorneys, or send one based on current status even if it does not cover what is needed. Nothing proceeds without a proper power of attorney. So on short sales and foreclosures, if you’re the buyer you may be forced to stick with the program because it may be a problem to switch. If you’re the seller, your loan may need 60 POA's to give 4 trustees the authority to sign a POA to give the single servicing company the authority to conduct the transaction.