The power of banks...

I think that you may be over-estimating the power or influence that "banks" have today.

First of all, at the loss mit level, the vast majority of mortgages are securitized and not really part of the banks' balance sheets. Most banks are using mortgage servicing as a means to offering more profitable consumer products and services and delegate via contract much of the servicing and sub-servicing.

At the asset management level, when a loan has become an REO, lenders/servicers have few concentrated powers. Much of this is contracted out to various vendors and much of the day-to-day work is piled onto the plate of the listing brokers, including communication with senior lienholders (i.e., HOA's). Ever know a broker/agent who really cares how much the HOA wants to collect unless it's coming out of his/her margins?

Beyond legislative influence and industry association PAC's and lobbyists, I doubt if lenders or servicers put much effort into trying to curb HOA's or other super-priority creditors. These costs get lost in the line item list.

For Private-party lenders like myself...yes. However, I don't get very excited until it threatens my margins because now it's personal!

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