Back when I was in the process of getting my license, one of the things that was most emphasized during the classes, was the importance of the code of Ethics and all the RESPA regulations. So I was shocked to see that when it came to Short Sales and Foreclosures, that was the first thing that went out the window.  It's not realtors that are in violation though, but the banks! Ya, I said it!
Absolutely shocking. Its like they have disregarded everything that agents have worked so hard to accomplish and the level of professionalism we strive to maintain.
Examples of what they are doing??

- Violating deadlines as set in the contracts

- Specifying lenders to be used ( RESPA violation)

- Not using the sales contracts provided by the State which allows them to add and remove clauses that were meant to protect the rights of the buyer

- Specifying that seller is to choose closing attorney (that the buyer pays for by the way. really??)

- Cutting, and in some cases removing, agent commissions. ( agent in the office got no commission on a transaction due to the fact that she was related to the buyer. What???)

- Contacting the clients directly, disregarding both agents

- Demanding deposits before contract is signed by the seller


It really makes you think, is anybody seeing this??  Its almost like they keep trying to push the envelop just a little bit further every to see how much they can actually get away with. So far, pretty much anything! Makes me wonder what could possibly be next???
 

 
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4 Comments on Short end of short sales and foreclosures

MAR
10
2010
213,775 Points 53 Featured Posts

The cuurent environment in real estate is certainly a validation of the old Golden Rule - he who has the gold rules! Banks could care less about anyone involved in these transactions but themselves. Once a house becomes "an asset" it looses all personal meaning and joins all of the other asstes in the corporate meat grinder. If you happened to be associated with it; oh well, welcome to the meat grinder. 
12:47pm • #1
159,139 Points 2 Featured Posts

I haven't seen it as bad as you have but I can certainly relate to the fact that lenders don't seem to know how to read. The biggest thing to remember of course is that they have no fiduciary duty to the borrower so they could really care less, unless you happen to have someone with some scrupals as the originator.

I'm a free market guy so it absolutely astounds, confounds and ticks me off when people beg to be regulated because they can't behave themselves otherwise. That's exactly what is happening in your case.

Where I've had most of my issues are on the REO side of things and since I won't just do whatever I'm told I'm all but out of the REO business. I won't just gloss over a title issue or violate the law or my ethics just to make the REO company happy.

Good luck down there.
12:49pm • #2
245,989 Points 7 Featured Posts Attended Rain Camp

You hit the nail on the head here.  Why is it that the banks don't have to follow any of the rules.  Secondly who is going to go up against these banks.  It's easier just to say forget it and move on.  I honestly don't even want the government to get involved it will just become more difficult.  Someone needs to come in and clear out all this legislation.
12:54pm • #3
MAR
15
2010
Called Shot Master

These big banks have been very pigish thru -out this entire Recession !!!!!! They weren't worth bailing out !
3:57pm • #4


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