A Bank Accountant Thought They Saved a Few Dollars
Earlier in the year I started to work with a distressed family on a short sale. They had been through an attempt at loan modification and were denied but the bank was willing to wait for them to attempt a short sale.
When I made contact with their file manager, they gave me the bank's required number based on an appraisal done within the previous 30 days. It seemed high to me, but banks seldom move off their numbers within a short period of appraisal.
With weeks passing and no offers due to pricing and the condition of the home, the bank decided to go to the auction process. A new number was gotten from a new appraisal which was still high. The auction procedures were also a bit excessive as potential buyers would need to allow a credit card charge of $2500 to enter the process and none of that money would be credited to the purchase. After 2 bid rounds the auction process was put on hold.
Meanwhile, the ever desperate owners were getting the opportunity to try their loan modification again. The listing was removed from the MLS so the loan modification could be attempted. I heard nothing from the owners after that.
This weekend, while showing homes near that property, I went by just to check on the family. There were no cars in the driveway, and the snow had not been shoveled after our recent snowfall. It was apparent that no one lived there, and the sign on the door from the property management company attested to them being evicted and the property foreclosed.
In walking around the back yard, there was a large tree that had fallen over the back of the house and had punctured through the roof. The house is now exposed to the elements and whatever value that accountant felt was in the house will be rapidly lost and this house will most assuredly be selling for far less than the last appraised value.
A family on hard times has been displaced and will attempt to restore their lives where ever they have moved. The bank will write off loss and maybe even collect on the insurance for the damage.
Had they allowed the sellers to do their loan modification, that house would still be providing shelter to that family, and with the tree falling on the roof, their insurance company would have done the repairs to keep the house weather tight.
We are not always successful when trying to close a short sale for a family. The job is easier when the banks co-operate and wants to resolve a tough situation. The job is impossible when the eyes viewing the files at a bank are short sighted and are just looking at a perceived bottom line.
For want of a nail a battle was lost. In this scenario, some bankers decided that for want of a few dollars, a family was thrown out and ultimately the house was lost as well.
A Bank Accountant Thought They Saved a Few Dollars
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