The High Road Papers - Latest Comments in Short Sales and Stupid Lenders

Re: Short Sales and Stupid Lenders

Same Problem Bank — Mon, 04 May 2009 23:43:32 -0000

BTW, the above short sale's bank is the same one that gave you a problem. I feel your pain. Same runaround.

Re: Short Sales and Stupid Lenders

Lender MI and not Seller MI — Mon, 04 May 2009 13:54:24 -0000

My short sale failed. Why? Lender MI requiring Promissory Note to be paid by Seller. $20K / 10 year note negotiated down to $10K / 10 year note, but Seller cannot pay the note. Hello? That's why it's a short sale. Seller can't afford anything.

BPO was approved and we were waiting for approval to open escrow and then BAM! Bank negotiator says Seller has MI. Seller contends and proves no MI on account. Paperwork faxed from escrow and Bank EOY statement. Bank's Customer Service even says no MI on account. Bank negotiator will not provide any proof of Seller MI thru emails and insists there's MI. Not once did negotiator say it's the Lender's MI.

After 3 weeks of trying to prove no Seller MI, negotiator states that Promissory Note by MI is required or cancel request. BTW, this Bank has a short sale classified has Home Retention. Seller cannot pay anything so Bank negotiator cancels request - Home Retention request - April 16. Foreclosure scheduled April 27. Foreclosure does not happen - postponed until May 27 because it's was under a Home Retention request. What? That was canceled already.

Bank says Freddie Mac moratorium required postponement. Bank says call Freddie Mac. Freddie Mac says the vacant home does not qualify for moratorium and escalates to Bank to foreclose.

No need to put the house up for short sale since Lender-owned MI will get in the way again. The house is desirable and gets multiple offers for the short sale, but the Bank takes too long and then is now bringing up the Lender-owned MI to be paid by the Seller. Get ready for even more frustration!

Buckeye, AZ

Re: Short Sales and Stupid Lenders

Thesa Chambers — Thu, 16 Apr 2009 00:41:39 -0000

I loved this story... it is amazing how even when you do everything right something so stupid can happen.... I am surprised they did not try to put the blame on you.... as you can see... great story thanks for sharing

<abbr></abbr><abbr>Thesa Chambers´s last blog post..Central Oregon Short Sale Facts</abbr>

Re: Short Sales and Stupid Lenders

Brewer Caldwell — Thu, 02 Apr 2009 13:58:58 -0000

Pretty desperate for them to also add a per dium late fee if you dont close on time even though they gave in this case only 16 days for closing to take place putting the buyer in an almost impossible spot! They might as well have just increase the sales price 15 days late fee per dium! There are some funny people out there that is for sure. It really doesnt make any sense. How ironic, the stimulous of the economy is the banks/lenders bread and butter,, but yet they shoot themselves in the foot by making it impossible to buy a home with these kind of time frames!

Re: Short Sales and Stupid Lenders

Troy Reynolds — Mon, 30 Mar 2009 22:03:37 -0000

What risk do short sales have for the buyer? Any?

Re: Short Sales and Stupid Lenders

Jason Humpal-Fort Collins Real — Mon, 30 Mar 2009 00:04:36 -0000

I love my job, dealing with clients, finding homes for them, selling homes...I LOVE everything; HOWEVER, when this kind of stuff happens, it is enough to make me rip my hair out. Sorry for your frustration, I can completely understand. I hope your buyer was able to get the house they wanted.

Re: Short Sales and Stupid Lenders

Kevin Sandridge — Thu, 26 Mar 2009 14:49:10 -0000

Agree here with the overall sentiment that lenders/banks are completely standing in their own way on this issue. I get that many of them cut staff months back - and some have yet to ramp up their Short Sale review departments (cause, you know... that would make sense)... but geez!

<abbr></abbr><abbr>Kevin Sandridge´s last blog post..A Tweet by Any Other Name…Using Twitter to Increase Blog Traffic</abbr>

Re: Short Sales and Stupid Lenders

Exit Realty Nova Scotia — Mon, 23 Mar 2009 12:53:37 -0000

Is the plan to buy toxic assets going to make it easier to get short sales approved or do you think it will have any effect?

Re: Short Sales and Stupid Lenders

Linda Craft-Raleigh Area Real — Sat, 21 Mar 2009 17:01:09 -0000

Short Sales can be such a huge headache, esp when banks pull this kind of *stuff * and making it impossible for a homebuyer to BUY the home!

Re: Short Sales and Stupid Lenders

Jim Whatley — Fri, 20 Mar 2009 15:30:39 -0000

It like Forest Gump said Stupid is as Stupid does. I have explained this to 10 year olds who get it.

Re: Short Sales and Stupid Lenders

Brewer Caldwell — Fri, 20 Mar 2009 15:19:34 -0000

Short sales can be soo frustrating. I too know a lot of agents that won't even do short sales. You'd think they'd be falling over themselves to accept offers on a home that they are going to end up with.

Re: Short Sales and Stupid Lenders

JohnnyGuerra — Mon, 16 Mar 2009 13:42:52 -0000

Great post! I know the feeling and HATE dealing with Short Sales. But, they are a necessary evil.

Re: Short Sales and Stupid Lenders

http://www.buyhomesin10days.co — Mon, 16 Mar 2009 06:48:49 -0000

Nice post Jay.

Re: Short Sales and Stupid Lenders

Jim Whatley — Sun, 15 Mar 2009 22:15:23 -0000

the problem is there is no incentive for anyone at the bank to get off their ass and make a deal. The guy gets his weekly check. give me the property and someone who can make a decision today and lets getter done.
someone get a house they want, the bank gets rid of a property they do not want and I get payed for what i do.

Re: Short Sales and Stupid Lenders

Jeremy@REO Directory — Sun, 15 Mar 2009 19:48:42 -0000

@Scott Focusing on short sales can be quite lucrative but expect to learn some hard lessons along the way. Certain lenders are almost reliably and unreliable and I'll bend over backwards to avoid working with them.

This post made me laugh - something I haven't done a lot of with dealing with short sale offers. Thanks Jay.

Re: Short Sales and Stupid Lenders

Scott@Exit Realty Nova Scotia — Sun, 15 Mar 2009 15:51:03 -0000

I was talking to a lady from Las Vegas about short sales at our convention in October and she told me that she is concentrating on them because if they are done right and if you get enough of them then they can be very profitable. It seems to me that you would have to have a good "team" from end to end to make them work effectivly. Like you said, if they are taking forever to get approved and then get sent over, it's a headache for everyone involved. Especially the buyer.

Re: Short Sales and Stupid Lenders

Ashlee FW — Sun, 15 Mar 2009 15:41:51 -0000

Banks are clueless when it comes to short sales!! They always have some excuse as to why they did not receive the paper work or becasuse their assistant is out of town. Then when you finally get something done, you have 24 hours to fix the problem but then they get 24 days to sign off!! It is a vicious cycle!

Re: Short Sales and Stupid Lenders

Jay - The Phoenix Real Estate — Sun, 15 Mar 2009 15:22:35 -0000

Sorry for the intrusion, I'm testing the Facebook Connect feature. Does this comment publish to Facebook?

Re: Short Sales and Stupid Lenders

Linda Davis — Sun, 15 Mar 2009 14:34:23 -0000

My last painful experience was last fall with a military buyer who was transfered from the area and couldn't sell the house for what he owed on the mortgage. The short sell department wouldn't even talk to us because he hadn't missed a payment even though his sale would be short.

Re: Short Sales and Stupid Lenders

Bill — Sun, 15 Mar 2009 06:55:32 -0000

14 days fax...LOL....could be it was in their electronic que (sp?). But on the other hand 14 days to close is not so bad...appraisal and lenders should not be overloaded nowadays. Git R' done Dog

Re: Short Sales and Stupid Lenders

Dan Connolly -Atlanta Real Est — Sun, 15 Mar 2009 01:54:20 -0000

I think that the banks would rather let the property foreclose. That way they can collect their mortgage insurance payoff . That's cash now. Then they can slash the price, sell at 50 cents on the dollar, and amass huge losses.... if they lose enough then they can get some more bailout money!!!!!....then the executives can split that up, sit back twiddling their thumbs and wait for the bank to actually fail!!!! That's the ticket!!!!

<abbr></abbr><abbr>Dan Connolly -Atlanta Real Estate Guide´s last blog post..Disclosure: What the seller DOESN'T have to tell you in Georgia</abbr>

Re: Short Sales and Stupid Lenders

Dean — Sat, 14 Mar 2009 19:12:32 -0000

I have a friend who is has been trying to get his lender to approve a short sale and the lender keeps losing the documents! It is hard to believe how incompetent these lenders can be!

<abbr></abbr><abbr>Dean´s last blog post..I like to read other people’s blogs</abbr>

Re: Short Sales and Stupid Lenders

Tina@Atlanta Real Estate — Sat, 14 Mar 2009 19:05:50 -0000

Fortunately not all banks are the same. We've dealt with the banks that take 3-4 weeks just for an answer, but we've also had several that have been great to deal with and the entire process went very smoothly.

Re: Short Sales and Stupid Lenders

Mn Mls — Sat, 14 Mar 2009 18:14:47 -0000

Here in Minnesota over the last 3 to 4 months 60% + of the pending sales have been lender mediated transactions. Most of which are foreclosures. I am finding most agents are starting to steer buyers away from short sales. Case and point for me is I have a client that offered on a short sale on 9/5/08 and we have yet to get any response from the bank.

<abbr></abbr><abbr>Mn Mls´s last blog post..Search Downtown Minneapolis Real Estate Condos and Lofts</abbr>

Re: Short Sales and Stupid Lenders

Yvonne Reil — Sat, 14 Mar 2009 14:11:07 -0000

Hmmmm....In my recent experience I deliver the offer, wait 5-7 business days for response, receive a counter which must be responded to within 24 hours, deliver counter and wait 5-7 business days for response, receive verbal acceptance (yeah!!!!), but now have to wait 5-7 business days for fully executed contract, but now we have 48 hours to deliver emd.....and it goes on and on...I guess compared to some of what I have read my experience is not so bad.