Real Estate Blog - UPDATE: Right hand doesn't know what Left hand is doing

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UPDATE: Right hand doesn't know what Left hand is doing

Communication - oh, how valuable it is! Help my key doesn't work!

I have a Short Sale Listing that I received a call from an Agent saying that she couldn't get into the home with the key in the lock box. I thought; how could that be? So this afternoon I took a trip to the home to find a notice showing through the kitchen window that had been posted from the inside.

The note said, "... No trespassing. This lock has been changed by Mortgage Consulting Company...if you have any questions contact us or the Mortgage company..." What? Why were the locks changed....there isn't even an auction date scheduled on this short sale? In fact, I just spoke to the Mortgage Company less than one hour before. They had sent me a fax to let me know that a Negotiator was assigned to the file. I phoned her, she was very agreeable, was going to begin a review of the file as I have an offer on the home and she would probably be able to order the appraisal tomorrow. She was excited to know that there was only a 1st and no PMI. But no mention of the locks being changed. She asked me if they need to have the Appraiser contact me and I said yes, please. HA....so now, how do I let the Appraiser in with no key?! I've phoned her and left a message in regards to the lock dilemma.

This is a first for me. I know locks are changed once a home is foreclosed on and the bank now owns but when a home is in pre foreclosure without a scheduled auction date?? Does the right hand know what the left hand is doing?!

UPDATE FROM ORIGINAL POST ABOVE:

I spoke to my very pleasant negotiator, and she had no idea why the locks were changed but scrolled through her notes on the account to find out that YES the locks were changed from their Preservation Department. She indicated that sometimes this happens when a servicer goes by the home and determines that for whatever reason the home may not be safe. Well, this probably happened because if a servicer had gone by and saw that one of the locks on the door handle was missing the lock barrel (I'll call it) and only the dead bolt was there, it may have looked like foul play perhaps; so they changed the lock. She gave me the phone number to the Preservation Dept, I contacted them, they had the local servicer company contact me and a technician came to me providing me with two new keys and this all was corrected the same day. Super! So I'm back in business and learned what to expect for the next one. So until the next one, good luck on keeping your left and right hand together!

The more you know, the better prepared, the better the outcome.

I serve Coral Springs and the surrounding cities such as Coconut Creek, Parkland, Plantation, Tamarac and Sunrise in Broward, Dade and Palm Beach Counties of South Florida as your dedicated Realtor, Short Sale Specialist and CDPE Certified Distressed Property Expert ready to work for you.

I'm looking forward to hearing from you soon. Please call me at 954-464-1100 or email me at: lynnp@ImagineYourHouse and it would be my pleasure to help you!

Learn more about me and Coral Springs Real Estate as your Coral Springs Realtor

Posted by Lynn Pineda-Coral Springs REALTOR, Short Sale Specialist on 04/14/2008 07:12 PM

Comments (28)

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28 Comments on UPDATE: Right hand doesn't know what Left hand is doing

APR

2008

How odd. Let us know how it turns out.

That's not very nice is it? When you just trying to help put something together.

Lynn:

Sorry to hear that you are having a communication problem. I would say this is a first. Most of the time the lock box of the agent is the only way to get access.

Lynn, besides the left hand not knowing what the right hand is doing, changing the locks that early sounds a little presumptious to me.

Hi Lynn, this is an issue that may not be at all acceptable...unless the home is owned by the mortgage company or they purchased the keys from the owner which equals ownership with a document filed as q quick claim deed. This does not happen often but has happened. Let us know what you find out. Nice post.

Just a thought, I have ran into situations like this where the wrong house was rekeyed. If there are other foreclosures in the area this may be the case. Good luck

That doesn't seem legal. How can the bank "take posession" of the property if it hasn't foreclosed? very interesting situation. please keep us posted. hope it all works out.

That has never happened to me. Maybe the owners told them to take over property? Not sure. Keep us informed, curious of how this happened to you.

Lisa, yes I know exactly my thoughts ... how odd! Yes, I'll keep you posted.

Greg, exactly....not nice! How dare they mess with my trying to sell the property and don't tell me. After all, I'm trying to help them too.

I have never heard of this- We have a short sale and the bank is really hands off- I would not expect that they could even locate the property let alone change a lock- ODD

Lorraine and Loretta, a first for me too. It just has to be an error on the side of the bank, I'm sure.

Brian, I think somebody pushed their authority a bit too far.

Gary, I'm anxious to find out what happened. I'm hoping to get it all resolved tomorrow. After all, I'm supposed to hear from an Appraiser possibly tomorrow.

Ted, it being the wrong home would be great. It's either that or we just got the wrong prescription like we do in the hospital. They operated on the wrong leg! HA

Kim, I really don't think that it can be intentional. I think somebody simply made a mistake and picked up the wrong file - I'm hoping anyway!

Stella, strange isn't it? I will definately keep everyone up to date on this one. Never a dull moment in the life of foreclosures!

Barbara, oh, you made me laugh...that's a good one. Good luck! Glad to know you won't have to worry about the locks being changed prematurely.

I am in the process of a counter offer on a short sale and the owner got a letter from the lender saying they were going to start foreclosure procedures. One phone call to the loss mitigation consultant we had been working with stopped the foreclosure process. Keep on the phone and let them know what is going on.

APR

2008

Lynn- The confusion within banks is mind boggling. They probably did a bpo and the agent notified them it was vacant, so they are protecting their asset. But, the negotiator should know this....crazy.

the banks have an abandonment clause in many of their deeds. they are merely protecting their asset. (property retention) in the event that this happens and the sellers have not signed anything signing the home back, or giving them permission to re-key. Then..... call your favorite locksmith and take back your listing. the home is still owned by the sellers and they have a cooperative agreement with you to sell the home.

oh, and don't forget to include the cost of the re-key on the settlement statement.

this has happened to me on 4 listings, i have sold all 4 as short sales after the re-key.

APR

2008

Cindy, it's so true that communication is key in stopping a foreclosure

Mark, you definately came the closest in helping me try to figure out what happened here. Confusion is exactly right! I've updated my post, please read above.

Matt, I like how you say to take back my listing! I was so annoyed to see that and I thought how dare they mess with my listing that I'm trying to sell. Thank goodness it was all a communication error and I'm back in business. Please see my UPDATE above.

That's pretty squirly. Why can't the preservation department give you or someone a call for the heads up.

Ha Mike, I haven't heard squirly in ages - it was pretty squirly you're right LOL! I'm happy it all worked out fine and I'm on my way in getting a short sale approval. They were all very accommodating and realized that a mistake was made but remedied it quickly.

APR

2008

Yep - same thing just happened to me. For the third time. Wells Fargo explained that if they send someone by and the house is unoccupied they secure it. Once upon a time they left lockboxes, not any more.

I found out about each of the three occassions when I went to show the property.

As to their right to do it, there is some language in a standard mortgage which gives them the right to secure the property should the property be deemed abandoned. They just can't seem to differentiate between abandoned and vacant.

Common sense tells me, for the most part, if there is a MLS lockbox and a yard sign then the property is probably NOT abandoned - especially when Loss Mitigation has a copy of the listing!

Wendy, three times wow! I can certainly understand their reasoning if it appears to be unsafe, but like you said if there's a lock box on the door? Hmmm .... what could that be?

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