Just a quick story on a recent home I listed -
Homeowners that have contacted the bank(s) and they have a true factual hardship - a young daughter becomes terminal, they go through all this difficult process of going to specialists, doctor after doctor, bills are mounting, hubby working day and night, they do everything they can trying not to have a late payment on their bills, mortgage and car loans, they are exhausted, struggling, calling in favors from family, friends and even local community support.
Well they make the dreaded call - they tell the bank what is happening and they are not yet late on their mortgage, but letting them know it is becoming emminent - now this mtg company - b-ig o-l a-nonymous one - you know which one, they spend hours on end going over all the paper work, sending in everything 6 months go by, they say I am sorry there is nothing we can do - unless you miss a mortgage payment, which they did not want to do. Here is the fun part, now they get sent to collections, after they were advised to miss their mortgage payment so they can get help on the HAMP / HARP Plan.
Time has gone by and this b-ig o-l a-nonymous bank said, "we are sorry, since you missed your mortgage payments and you now have to much debt your debt to income ratio is to high and you do not qualify for a loan modification, we recommend you put your house up for a short sale".
So, they did what they were told to do by this b-ig o-l a-nonymous bank, house gets listed at a price point that was in line with the current market, time goes by and finally a buyer comes along, sees that this is a short sale and makes an offer 20,000.00 less than listed price, BPO comes in higher than what it was originally listed for - buyer 1 walks after 6 weeks waiting to here counter from bank buyer found a REO in nearby area for what they offered on our property.
Home sits on the market, holidays come and go neighborhood values drop, current trend is declining, price reduced, buyer #2 makes an offer 12,000.00 less than list price - BPO comes in close to list price buyer will come up 6,000.00 bank rejects offer - you guessed it, house back to active.
Home sits on the market - current trend in neighborhood still falling - then a couple of REO's come on then market nearby, so guess what? - Drop price! REO's listed - Below our price - we reduce again - finally have an offer from buyer #3 again the bank orders new BPO - again value is over our current list price buyer will come up to highest and best 228,000.00 as REO's are selling for that and less, bank wants 235,000.00! Firm! We are at an impasse we get a supervisor involved - Nothing! Buyer #3 walks buys REO down the street for you got it - 224,500.00
Ready for the big closing after 10 months of all this pain the seller has had with daughter ill, updating everything, getting calls from the banks collection dept the whole time, now here comes the finally - Goes to Foreclosure! Sales at auction on the court house steps - wait for it, wait - for 201,522.00, a grand total difference from our first offer when we had a buyer at 255,000.00. The bank sold it for 53,478.00 less than our original first offer! This is insanity, lunacy and craziness all rolled into one big blundering financial bank pile of mess!
Now why would a bank want to go through all this trouble lose more money? Does this make any sense? This did not benefit anyone but that b-ig o-l a-nonymous company!
Sure would like to be a fly on the wall when all the banks are in their board rooms!
Just a true heart breaker for this family.
Jane Wells.
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