Posted by John Sterling on September 21, 2003 at 12:36:22:
Reminds me of the used car business:
Everyday across America a Owner/Manager of a Used car lot will start working on a plan to detail all their own cars and save the expense of sending the cars out to a detailer. So they will go and buy all the equipment and supplies, run an ad in the newspaper looking for a guy/gal to work his As$ off for $9.00/hr. at their car lot. They will hire someone and the operation will last maybe 3 to 6 months on average.
Then a new Owner or Manager will come in with a bright new idea! “why don’t we send the cars out to a local detailer and save all the time and hassle of detailing the cars ourselves.” And so the cycle continues just as cycles in the real estate market change the way banks handle their REO’s. The lenders all think they have re-invented the wheel when the market is hot and the REO’s have multiple bids, when the market cools and it takes 90 plus days to sell, well then they change their tune and say,“we are not in the real estate business” and they hire a good Realtor to handle their mess.