Corporate incompetence
August 17th, 2012

I have always suspected that re-posssessions are having a negative effect on sales prices in the local market but here is an example of the stupidity of lenders when it comes to disposing of assets.

In April this year we marketed a local property with garden at £110,000.  In May we received an acceptable offer of £95,000 and the sale was subsequently agreed.  Unfortunately the owners then discovered they were not in a position to pay off all of their loan and the lender took back possession of their home.

That property has now been listed by the lender with their Estate Agent at £80,000 and one would suspect it could now be bought at around £70,000.  That is £25,000 less than the offer we received in May.  Due to the corporate system, I would guess the lender does not even realize we had an offer on it and are oblivious to the £25,000 loss.  The policy seems to be sell at any cost and it is having a costly effect on local home owners.

Corporate greed got us into the current situation and now corporate incompetence is a barrier to recovery.