Stupidity of Today’s Banks and Lending Institutions

 Banks are the current leaders of Institutional Stupidity. I don’t want to name the particular bank involved in this post, but astute readers will find clues throughout this edition; it is likely that most, if not all, of today’s lending institutions are hotbeds of idiocy. If there’s a reader out there who has not been scathed or badly burned after having to deal with a bank, let me know so that I may allow tears of joy to freely stream down my face in your honor. I did cry just such tears the other day after I heard this story from reader Sam:

A duplex was listed for $285,000 in a quiet beach-side town. This building was offered as a short sale. The bank that held the mortgage on this property shall remain nameless.

Sam made an offer, through his real estate agent, to buy the duplex for $225,000. This undesignated bank countered Sam’s offer with their own at $275,000.  Are you with me so far? Because soon this tale’s going to get very complicated.

Sam made a counter offer to the bank’s counter in the sum of $250,000. Sam didn’t know it yet, but he would soon learn that this unnamed bank was run by stupers (short for staggeringly stupid persons). Such stupidity, in this Cinderella story, would work to Sam’s benefit.

A month passed with no word from this bank. Perhaps these bank employees were thinking, dozing, busy foreclosing, eating cheese canapes, bowling, on vacation or sick leave. Sam grew frustrated and was about to give up when the bank gave Sam a counter to his counter offer…the bank came back with $240,000! Sam could have the duplex for $240,000. Yes, that is $10,000 less than the bank’s original counter offer. Sam’s mouth fell open in disbelief for so long, bats moved in mistaking it for a damp cave. Meanwhile, the bank remained clueless, as it was, and is, overrun by stupers.

Unfortunately, short sales and foreclosures are far too commonplace, thanks to the current economy, and most of the people involved do not have happy endings, as Sam did in this case. This is because, quite suddenly, stupidity is rapidly increasing.

As a director of a non-profit legal service, I receive tearful calls daily from desperate people trying to keep their homes. Many of them start the process of modifying their loans only to find that a different department in the heartbreakingly stupid bank has foreclosed because communication is considered a waste of time in institutions run by idiots. These freakishly inane lenders prefer to foreclose and lose money on a home rather than modify and allow the homeowner (ie, the qualified party that the bank made the loan to in the first place) to remain. How idiotic is that?

How do we maintain our sanity in the face of such blatant stupidity? We have to rise above the circumstances (and the mindless) by using the heroic courage that is inside each of us. We have to think our way out and find a solution because remember, most people do not think at all, as it takes effort. Imagine what those of us who do think can do.

Please think.


7 Responses to “Stupidity of Today’s Banks and Lending Institutions”

  1. Sergio says:

    Dear Keli, I miss your blog. It is always very interesting.
    I hear you loud & clear. They are absolute idiots.

  2. StarPower says:

    Honey, you are so right. People who work for banks (‘specially the one we don’t mention)are not only stupid, but they don’t have any heart. The way they talk to you is like you do not exist; stupid!

  3. Jenny says:

    It’s hard to maintain your sanity in the face of ALL the stupidity that is going on right now. This is NOTHING compared to Sam’s story, but just this past Saturday my husband went to our bank WHERE FOR YEARS WE HAVE HAD NOT ONE, NOT TWO, BUT THREE ACTIVE ACCOUNTS and was made to wait for 45 minutes for a person who could help him … all he wanted was a printout of each account’s recent activity (don’t ask me why because you can see that on the computer) — and was told it COULD NOT BE DONE even though regularly for YEARS they have done this very same thing for him.

    Forty-five minutes of a beautiful Saturday ruined on account of bank stupers. It oughta be a crime.

  4. omawarisan says:

    Here in the unnamed eastern town owned by the unnamed bank their stupidity reigns supreme and must be obeyed.

  5. Elaine says:

    As Andrew Jackson said about our banks, a den of vipers and thieves.

    “Gentlemen, I have had men watching you for a long time and I am convinced that you have used the funds of the bank to speculate in the breadstuffs of the country. When you won, you divided the profits amongst you, and when you lost, you charged it to the bank. You tell me that if I take the deposits from the bank and annul its charter, I shall ruin ten thousand families. That may be true, gentlemen, but that is your sin! Should I let you go on, you will ruin fifty thousand families, and that would be my sin! You are a den of vipers and thieves.”

  6. Ferd says:

    Yes, I’m old enough to have any number of irritating and terrible experiences with banks. There are really great banks out there, too. They tend to be smaller and promote personal service. We bank at one of such places here in Winston, and get the southern hospitality at the same time!

    You are so right about heroic courage and thinking your way out. I long ago figured out that if I come up with a good plan to deal with any given financial issue, the bank is likely to support it. But they would never come up with the same solution themselves. You have to be proactive with banks, and assume that one department is not talking to the other.

    As always, great post, Keli!

  7. Ferd says:

    BTW, it didn’t escape me that you have gone from being an entertainment industry attorney to “a director of a non-profit legal service.” You are some kind of awesome!

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