Servicer frustrations in Florida

Re: 'Loan servicers treading water' (April 23)

Dear Editor:

Our experience managing several short sales for investment (vacant) properties indicates a significant disconnect exists between the servicers and investors.

The first problem is with establishing realistic property valuations. Typically, servicers order broker price opinions (BPOs) instead of a certified appraisal -- reportedly to save costs. That is foolish since in many cases the properties were vacant with monthly carrying costs over $4,000! The BPOs compounded the problem since they are done by Realtors willing to work for a nominal fee and produce BPOs that are not objective, with the valuation significantly overstated.

The next challenge is servicers' lack of response -- sometimes taking six to eight weeks to respond. In one case, a good $750,000 offer covered the net payoff amount of the first mortgagee and should have been an easy decision. But that was six months ago and now the offers are coming in for $100,000 less. This ineptitude is conducted by a well-known national company. However, we have learned this indifference is typical and doubt this company has any reason to change.

It is frustrating to be subjected to the nonstop whining about the subprime meltdown and consequences on our economy when, in fact, the stakeholders are unwilling to help themselves or insist their servicers invoke "best practices" and mitigate their losses more productively. There is no agency or oversight department capable of holding anyone accountable and discouraging this inefficiency and costly sloppiness.

Ted Nohren
Broderick and Associates
St. Petersburg, Fla.

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