cin's Blog

Wells Fargo Poor Handling of Short Sale

cin langston (changingstreets.com) — Tue, 30 Sep 2008 21:57:34 -0500

So we all know that short sales are a nightmare. And I have yammered on enough about how horrible the banks are to work with in short sales and foreclosures. Nothing should surprise us. But today, I was surprised, appalled even, to hear this story involving a Wells Fargo short sale.

My offer has been in on this short sale property since Labor Day. I have received a few reports from the listing agent that the asset manager had requested the information be re-sent a couple of times. The listing agent is frustrated because the only communication the bank will have with her is via email. The problem is that she cannot get them to confirm which documents are missing so she keeps sending the whole package, only to be informed by the bank that they have not received the offer.

This house has been approved for short sale already, by the way.

Finally last night the listing agent received an email that because documentation was not received they were going to pull the plug on the file.

That is all very irritating but not surprising. The surprising part is this... The listing agent cannot get hold of the asset manager by phone. When she calls the general number they will not give her a supervisor, only the asset manager who will not return her calls. When I asked her why she won't press the issue about getting hold of someone higher up at Wells Fargo she told me that on two separate occasions her office had tried to demand speaking to a supervisor, stating that it was their right to do so. She was told by the Wells Fargo rep that SHE reserves the right to hang up on her. AND HUNG UP!

Am I over reacting or is that unbelievable? We are all so hopeless in these deals and some of the banks really are awful to us!

The shame is that the seller got bit by a house payment that doubled and is headed to foreclosure mid October. He's a single Dad trying to take care of his family and this deal could really help him but the bank refuses to do their job.

Wells Fargo is still in good shape financially, from what I understand, and trying to buy up other banks. They may want to pay attention to the departments that it already has.

Main Street V. Wall Street

cin langston (changingstreets.com) — Fri, 26 Sep 2008 12:10:02 -0500

Whose side are you on?

Being a resident of Main Street, I tend to lean in that direction.

Being a realtor whose business is negatively affected by the poor circumstances of those on Main Street, I am even more drawn in that direction.

When the market first began to falter and the first few foreclosures started to pop up, I was really upset with the attitude that those in default were "getting what they deserved." I don't think anyone deserves to lose their house. Without question a child is entitled to a stable home. Bigger and worse mistakes are made everyday with less severe consequence.

Yes people refinanced. For some it was for fun, toys, and excess, but for some it was out of necessity. People died. People lost loved ones. Sometimes it was the "bread winner" who went on to a better place leaving behind a mortgage to someone who did not know how to handle it. Sometimes the loss left survivors unable to cope and they simply let things go. Even if they snapped out of their grief in a month or two, it was still too late to catch up. Maybe those people were weak or ill prepared. Does that make them deserve to be homeless? Even the folks who refinanced for fun or bought over their heads... let's not forget there was likely a calming figure sitting across the table from them, telling them they could do it, as they handed them the pen and contract. Don't act like it didn't happen.

Have we already forgotten how many people have lost their jobs in recent years? Do they DESERVE what they got? No. And shame on the other Main Street residents in the beginning who celebrated and lectured the demise of their neighbors.

Very early on I worried and wondered aloud and I commented to those Main Street residents who passed judgment and hard balled their neighbors, "Won't these low prices and foreclosures affect the value of your own residence?"

So here we are, a few years into the mess. There are no longer just a few "irresponsible" folks on Main Street for us to point fingers at. All of Main Street is in trouble. Even those who didn't refinance or buy over their heads are in trouble. All of our homes have dropped significantly in value. Our jobs are affected. Just to make things that much worse, we're suffering at the gas pumps and the grocery counter.

The Wall Street situation is disgusting. The moves there are made out of greed. Everyone in that industry has hurt someone on their way up to their golden palace and not looked back. That is their "rep". But it is what it is. It is nothing new. And although it is mind boggling that we are facing their bail out, it should not be surprising.

From my vantage point Main Street was its own worst enemy, but not for the reasons of spending irresponsibly, rather for turning on each other at a time when we may have been able to make a difference. NOW everyone on Main Street is about "community" and helping each other. Where was that spirit a few years ago?

Who deserves to be bailed out and who deserves to fall? I don't know. I am inclined to give my sympathy vote to Main Street, but that doesn't mean that the "good guy" / "bad guy" roles are clearly defined. At least Wall Street doesn't pretend to be nice and "neighborly" while cashing in on your misfortune.

Undue Rewards

cin langston (changingstreets.com) — Tue, 15 Apr 2008 23:51:30 -0500

Hello to all on my first day over ACTIVE RAINing. I am getting a late start this evening and my pillows are calling me. On my mind tonight as my day closes is that ridiculous bill passed last week offering tax breaks and financial rewards exactly where they should not be. It might be old news to you all by now, but it's my first day here so I'm a little behind. :-) I am not even the political sort but how hard is it to understand that if anyone needs a break, it is the home SELLERS not buyers! You know, the SELLERS, the ones in hardship, no money, losing their houses? As opposed to the buyers, dancing the "I just screwed my neighbor" dance all the way to closing. And how about offering some incentives to the builders to stop building new houses and instead renovate some of those delapidated dogs ruining our neighborhoods. The great foreclosures go quickly. But there are those really bad ones that sit for years because the average guy hesitates not knowing what he is getting into. Those houses need experts to get in there and knock it out. Offer the builders an incentive for that. But as I take the last sips of my mango mojito and drift off into slumber it is the news I heard today that twirls in my head. That President Bush was actually against the bill. Hm. Now I'm confused. Does that mean that it WAS a good idea?