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A family's path to foreclosure with no solution in sight but disaster

I keep telling myself.."This is the last post I'll write about short sales"... but I keep coming back to the same old story and that's disappointment.

I moved into this brand new neighborhood. I got to see the trees grow from twigs to full grown logs. The neighborhood was a nice friendly place for family values and there wasn't many homes for sale.

While we lived there I continued to learn about the nieghborhood and my knowledge grew to the point where today I've listed and sold quite a few homes there over that time.

I also do extensively farm the area with my bi-monthly market reports....keeping the neighborhood informed of our ever changing market. The information I supply is "free" and there is never an obligation if you call me with general questions and I even make appointments to give homeowners a consultation which is always free of charge. Sometimes people just call me to thank me for sending the information. They always tell me how nice it is to be able to keep the information and compare it to the previous one sent out. But I do receive many calls to come by and list their homes as well.

About a month ago I received a call from a homeowner who lives in the same neighborhood. There was the voice of a young girl on the other line asking me if I could help her parents out of a bind. The first thing I asked her was why she was calling me instead of her parents. You see they didn't speak much English and were of latin decent. She asked me if that would be a problem and of course I said not at all.

Their problem was that their home was on a course to foreclosure destruction and they wanted to know if I could list their home and sell it as a short sale.They were receiving my market reports for a long time and thought they could put their trust in me. It seems I've been getting more and more of these calls by the day and figured that one more wouldn't be a problem but I let them know that although I've been through this before.....there were no guarantees. They said that they weren't living in the property and would have to come in from Orlando and would be calling me the following week to set up an appointment. I never did hear back from them and then they called me last week and wanted to meet with me this past Saturday. They even asked me to email them all of the paperwork so they could read it and sign it and hand it to me at the house.

I wanted to ask a few preliminary questions just so I knew what I would be getting myself into.They told me they were already 4 payments behind which didn't help matters and that both loans were with the same bank. I guess you could say that was about the most positive news I could get. They also told me that they were already approved for a short sale with the bank and had sent in the banks short sale package. As they continued to giving me information I was seeking...it was looking more bleak but I still agreed to meet with them to see if there was any solution I could come up with.

We met Saturday afternoon at the home and they seemed to be a really nice family. The husband and wife and their three children and another relative....even though the parents didn't speak English and the kids were there to help....we were communicating and I knew they were fully aware of what I was going to tell them. I guess you could say I saw a sparkle in their eyes. But before I was past the first room of the home I was inspecting and noticed that just about the whole ceiling was covered with brown spot water stains and there was this big hole with exposed bathroom pipes. Even though I'm not a licensed contractor I knew exactly what the problem was. I previewed the rest of the home and most of it was in fair condition.

I was thinking..."How much worse could this get?" Well it did get pretty bad once we stood there and I started to explain what will most likely happen in a short sale situation. I also explained to them that even though they were approved by the bank for a short sale and even if we have a contract it still would be at least a minimum of 90 days or even more before we would know the outcome. I also let them know that this would not stop the foreclosure process unless they were able to get an extension which usually runs 45-60 days. I let them know that most likely they would be served by an attorney very shortly.

All of a sudden they tell me that they just got served and showed me the papers. I told them they had a few choices. They could hire an attorney to go to court and get an extension or try it themselves. They needed to pay an attorney to get them this extension and I gave an idea of what the costs could be.

But even far beyond that problem was that they told me that they were now 5 payments late. This wasn't making me feel any better. I let them know that they only had 15 days of the 20 days notice to answer the court and if they didn't they could kiss the home goodbye. I wanted to know why they waited to call me. They told me they had a tenant living in the premises and they were being really nasty about letting them try to get the home sold so they needed to get the tenant out first. I was also wondering about all the paperwork they sent the bank. Was it lost?... Did they ever receive it? Their answer was exactly what I told them happens a lot. They tried to mail it three times and then call the bank to confirm that theyv'e received it and each time were told that nothing was on file.

Finally after they tried three times to get confirmation.... they sent it out registered mail with proof of delivery and still were told that even though they had proof it was delivered...the bank didn't have it. I can't tell you how much time I spend just chasing the paperwork. I try to save time.

Time is the most important part of the short sale. If you run our of time then you might as well just pack your bags.This was making me really angry...but I can only go by what these people were telling me. There's always another side to the story but this sounded way too familiar to me.

Now I knew why they didn't contact me in April because if they did..maybe I had time to fix this problem.

Now my back was up against the wall...what could I do now? There was no time and even if they get the extension....60 days would be a long shot without even knowing if we'd get an offer in time. My last resort was to ask them if they tried to do a deed in lieu. They told me the bank would not approve one.They were told of this by an attorney in Orlando...but they could only afford to pay $30 dollars for a half hour consultation. Apparently I gave them more information than their legal consultation.

If only I knew earlier...maybe I could have helped.

My only other idea was a long shot. Have them go down to the courthouse tomorrow morning and ask for help. They wanted to try to file the extension themselves. I also told them they should call the bank up and speak to a supervisor and explain what happened to their paperwork and the time they lost.

I was pretty upset that I couldn't think of anything else we could do and told them to let me know what happens.

I'm not sure if they knew what the future would hold and I was really angry because in my opinion these people in lost mitigation that answer the phone are totally unqualified to give this type of advice to people. I'll bet you that most consumers don't realize that when they are looking for answers...they shouldn't rely on these people to give them information just to make them feel better and get them off the phone. The public is being misled with the advice they are receiving and these people should really think before they go ahead and assure someone that everything will be alright.

I hope there is a positive outcome with this family but I'm not too confident on this one...it might be too late.

For more information please contact Neal The Real Deal Bloom-CRS-Realtor® /Remax Premier Assoc.

2500 Weston Road ,Suite 103

Weston FL 33331

(954)608-5556

Posted by Neal Bloom-Realtor ® Assoc.-CRS-Weston FL on 08/18/2008 01:20 AM

Comments (73)

foreclosure, path to foreclosure, families, disaster, no solution

Originally posted at: Weston Florida Real Estate Blog, Neal"The Real Deal"Bloom : A family's path to foreclosure with no solution in sight but disaster

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73 Comments on A family's path to foreclosure with no solution in sight but disaster

AUG

2008

Neal - My familiarity with folks in the loss mitigation trade is relatively minimal. What I do know is that the qualifications of folks who have the ability to make life changing decisions isn't all that impressive. A great example is a lot of the Underwriters out there of Mortgage Loans, nothing but stuffed shirts working for the token salary. I won't paint everyone with the broad stroke of the brush, but incompetence is all too common these days... in a lot of Industries. Makes one want to continually beat the education drum.

Jason,

I can't agree with you more. No matter what the case is...these people don't have much to pray for.

Neal, this situation sounds so bleak! It's amazing how casual the bank guys are with paperwork, which is really people's lives.

Neal it is very frustrating when you feel helpless to be able to help someone who is truly in need. But unfortunately this happens all to often. People wait to long, hoping that something will happen, and then find themselves in a situation that is beyond the point of help.

Hi Neal. This is so sad. I think that people who do not have enough education or the ability to understand contracts, or worse, english, have it so much harder.

Patricia,

Unless I can find a way to stop it until we could get it sold I would but I think they are out of options.

George,

I don't think I can help them at this point.

Susan,

I can only go by what they told me so I'm taking their word.

Neal: Even those bi-monthly 'reminders' that YOU are the one to call for advice didn't sink in with these folks (unless they were going to the tenant and not to the homeowner address). This situation does seem much too bleak and I'm hoping for a post tomorrow that you managed to 'save' this somehow or give us a glimmer of hope for these nice folks. Best of luck--they couldn't be in better hands!

Debe in Charlotte

Neal - that's a pretty sad story. So tough to be up against the wall and have few, if any, choices. I wish you the best of luck.

Jeff

Neal...

I think you had the answer early on ... whay didn't they call you sooner?

AUG

2008

Neal- People call us after they have been served too. We have been able to get all of them closed. We now make them get an attorney for $1000 for up to 6 months of postponing the foreclosure or another attorney who charges $500 a month to keep it at bay or they have to do it themselves.

People think that by not taking action the problem will go away and then they wait too long.

Neal- I came back because I saw you back on my reader board thinking that you are up posting at 2:24 a.m. and then I see it is a feature! That is why you are back up so fast: )

I'm wondering if cultural or language barriers play any role in this. While it appears that the family did try to act (i.e. mailing the short sale package three times) they may not have fully understood the seriousness and timeliness of the situation.

That being said, I place most of the fault with the lenders. Very few of them have the systems and personnel in place to deal with the volume of foreclosures and questions. So they're constantly in a position of reacting or even worse, not acting at all.

I really hope that there will be a positive resolution for this family. Maybe the local chapter of NAHREP can help?

Neal This is a sad story. Sounds like the cultural barriers played a factor in this matter. Something got lost in the translation here along with folks get scared when in this situation and fear can be paralyzing.

It looks like you certainly pulled out the stops and tried to help these folks. Sometimes it's just gone too far and there is nothing we can do to stop the train. ~Evelyn

Time for the grinch.

If you spend one nanosecond wishing you could have helped this family, you are doing just what they intended, find someone to step in and then they won't have to accept responsibility for their own bad decisions.

Put this family behind you. There are many families who can benefit from your experience.

Stories like this really tug at your heart......You want to help but the question is "how?"

Debe,

Thanks but I don't think there is a way to save them but I hope they go down and beg for relief.

Jeff,

Maybe if they could have gotten to me earlier then I could have helped.

Richard,

Yep.

Katerina,

I also forgot to mention that the husband got a job transfer to Orlando and the wife lost her job so they were stuck...as I mentioned...they cannot afford an attorney...I'm just hoping they can get a judge to give them more time and then I can try to sell it.

I definately was not up posting at 230am..I was waking up to the nise of the start of the storm.

John,

That could be part of it but the banks speak English when they send your bill. I think it was more that they just didn't know how to go about the process and that's the problem.They might have had options but people don't understand the steps and the time factor.

Nannatte,

I'm only going by what they told me...I was hoping they know more than most people would think.

Property Connections,

I'm doing all I can under the circumstances.

Lenn,

I might have to just let go if there is no other alternatives.

Neal, out of curiousity: how many short sales actually come to an actual short sale? Your area (Florida) holds the "experts"- the northeast is just getting their feet wet in this arena. I'd love your take on the odds of getting a sale through.

Neal, so sad. I know you feel helpless, unless they get that extension. They feel helpless and I'd like to know your answer to Options Realty above too. I have heard a terrible stat, but not sure if it is true.

Neal,

Sad story. What was the story about the spots on the ceiling?

Options,

What do you mean come to a short sale? Do you mean actually close? I couldn't give you the stats...I've been lucky to get all mine through either myself or with an attorney helping me sift through the garbage. I haven't done lots of them but I'm getting more and more of them. I have two right now...one hanging by a thread and another without a contract so far. And these two are going to be a long shot because the sellers are so up side down but the value is so low and no one would even show it until it reached a price point a buyer was willing to make an offer. I wouldn't say I'm the best but I've learned a lot...my first short sale was back in 2003 and at that time I didn't even know what one was or how to get it through...but I learned and with some help from my broker at the time...it went through in about 60 days.

Missy,

It all depends on the bank...the people we talk to...the extra effort...how long the buyer can hold out before backing out from frustration. I would think more and more are now closing because some banks are realizing hey don't want to hold inventory and end up selling it at the auction for less and then there are the idiots that just don't care. The people who answer the phone there should not be giving out answers that they aren't qualified to make...all they are doing is misleading the public into thinking they know the answers.I tell my clients that I'll do everything I can but nothing is guaranteed.

Tim,

The master bathroom shower was leaking from the tub...normally it's the shower stall but this was a tub. Because I didn't examine it extensivly I was guessing it was either a PVC pipe that split or the caulking was deteriorating and water seaped into the ceiling..it's common in the homes and in that model. I have sold the same model before and would you beleive it...there was a leak in the same spot.

Missy,

Neal, it seems like the dice are loaded in the direction of failure. I see many short sales come on the market in Central Florida, but I don't see very many of them get to the closing table. It's something I'm keeping close watch on. The story is sad, but you acted with your heart which, at the end of the day, benefits the entire real estate community - thank you!

Neal,

Fear drives the train for most folks these days. I've met so many who just turn off the news, shy away from computers,don't answer the phone and just toss post cards and reports in the trash. They are afraid, frustrated,mad and depressed.It is frustrating when I get a call and they are so far behind.

We're Realtors (we coach people on their options) not miracle workers. The million $ question. How do we get to them sooner?

Walk neighborhoods, knock on doors? Even then...would they talk? I don't know.....

Gail,

Another obstacle for them today is getting to the court house....we are in the middle of a major tropical storm...I hope the court house is open today. Thanks for stopping by.

Peggy,

They weren't even living there at the time...they had tenants and they weren't letting them do what they needed to do. I never give too much advice on that other than telling them to tell the tenants the truth and ask them to cooperate.

So many hard-luck stories these days! The statistics just don't reveal the human beings behind them, and it's always a heartbreaker.

Neal, you sound like me. I want to put my cape on and save them from themselves and the bank. Can they make up ANY of the payments to delay the foreclosure? I think people are embarrassed and stick their heads in the sand and when it is too late they call us. I hope, if possible, that you can help them.

Hi Neal,

Too bad these people didn't call you sooner. Stories like this always break my heart, hopefully they will get an extension. Best of luck! :)

I agree with Jason's comment. Too many people in control of life affecting decisions don't take their responsibility seriously.

Neal this is the reality of real estate these days. It is depressing. I feel like I am in addiction services in the sense that real estate is now more of an intervention on a lost cause. Many persons wait to long before they reach out for help. We have had several homes and persons we know including real estate agent friends lose their homes this year. In all my years in real estate I've never come across anything this bad. I pray for these folks, and the future of this country.

Margaret,

So true...I hate looking at the stats because if they are bad it only drives me more to want to find a solution even if there really isn't I tend to make it like I'll find it and win in the end but that's not always the case.

Audrey,

If anything I would rather they spend the money getting an extension for 6 months if they could but they can't afford it according to what they tell me. They owe too much and they originally told me that if they didn't have enough time to sell it that they were just going to let it foreclose...I told them their credit would be damaged severely for a long time.

Suzanne,

Thanks for the kind words.

Lisa,

I'm sure there is a lot more to this but I wasn't going to spend countless hours on it...all I know is there was a lis pendens that was filed on the last day of the month of July...that's all I see so far. The county seems to always be behind.

Jim,

And I told them that once it forecloses there is a good chance it will be contracted out to an agent in the banks data base... I'm not in their data base but I've been trying to get into theirs....but it still doesn't help the current family.

Yes the banks seem to loose many things. One bank called me two days before the foreclosure and said they accepted the offer but it had to be done in 2 days. NO mortgage could be done in two days.

Russ,

They told me on a recent one we are waiting for...that if they approve the sale we would be contacted immediately and have to close in two weeks. Two weeks is pushing it. But if they don't approve it they send you a letter in the mail in 5 days with the bad news...how cold is that?

Jean,

Katerina Gassett wrote a post a while back about how they were supposed to close on one only to find out it was sold at the courthouse...I never found out what happened with that one...maybe she'll chime in again KATERINA...are you out there!:))

Hopefully you can get it pushed back a bit for them! What a heart wrenching story Neal!

Neal, in NY, I think the majority of agents are in the stages of "shock" (in our area) that you likely encountered back in 2003. It would seem so simple to get houses sold before foreclosure, but lenders seem to think that pulling teeth is a needed aspect to the experience that homeowners are currently facing, making it that much more horrible. They almost seem to want to let houses hit the block, and I just don't get it.

Renee,

I guess I'll find out in a few days when I follow up with them.

Laurie,

Your tag didn't come through on the post but I see your name in my email so I didn't know it was you on the other end.

I hope they learn the lesson by driving people away and ending up selling it for less anyway after it hits the auction...any educated buyer isn't paying court house prices anyway.

Neal I always lurk your posts and occasionally comment - this one is near and dear to exactly what I do and have done for years. Unfortunately if these people don't have $30 to pay for a legal consultation there isn't much that can be done - except maybe the "B" word. As for their "bank" my guess is they are dealing with one of the big three? One of them which has country wide locations now found in a bank in America is notoriously crappy for dealing with short sales. The other one, well as far go, is not usually so bad. Chances are they will lose money at the auction but you're not dealing with gods and generals, just privates and recruits (at the bank I mean).

The one thing that came from HR 3221 that may help people who actually have an income is Hope for the Home Owner - which I discuss in detail in the HR 3221 conference call. If only you could have heard the tongue lashing given to the banks by Jim Beavers - it was magical.

You have a good heart, Neal, keep up your great work.

Hi Ken,

Thanks but actually you didn't pick the right one...this was actually a bank named after that fellow who decided to be the first president of the US and mutually agreed to cross some river:) But my other ones are across the country!

Neal

This is a sad story. I am working with some folks now that want to sell. They have a negative amortization loan and are looking at a $23,000 prepayment penalty. We may be able to sell it and avoid a short sale IF we can get the bank to simply waive the pre-payment penalty. The fact that it takes the loss mitigation department so long to process hardships may result in a short sale. We can only do so much to help people. Sometimes it just does not seem like we can do enough.

Sounds like a serious case of DENIAL. Hopefully your other readers will see this and will call you immediately if they are in this situation. May you could spin this around and print this in your local newspaper...just a thought. Something like, "Don't let this happen to your family."

Hi Neal, Seems like the sheer number of bad loans has pretty much engulfed the lenders ! The precess we are using does not seem efficient or fair !

Even if you put it up for short sale, would the bank accept what you can get for it in its current condition? I have opportunities daily here to help with short sales for very nice homes, but we can't get acceptable offers that the bank will work with, so I am not doing them. I have had reasonable cash offers turned down by the loss mitigation people, so I'm not rushing to do these. You may want to let this alone unless you have time on your hands.

I think all they have is a prayer. Recently, I had a buyer place an offer on a property, a short sale, that the seller indicated the bank had given "approval" to sell short. We WAITED and WAITED, finally after 8 weeks, the bank said NO. They chose to forclose on the property. I guess it is their easiest way out. Sad, but true.

Do I hear.....French Fries anyone? Place your orders and hope they don't run out at the drive through window:)

Kathleen,

You better get them to waive it fast before the value goes down even more.

Tamara,

I hope other people see it that way as well.

Bill,

We also have to remember that it's not just the bad loans...the people who are buying should also read the loan documents they are signing. They are over 21 and shouldn't pull the trigger just on impulse.

Dawn,

Unless they get me an extension of 6 months guaranteed then I probably won't even bother because there is no way I'll get a contract and then sell it and then get the bank to closing in time.

Anna,

And they end up losing more money foreclosing and wasting more time on the market and then end up selling it for less than the offer we present...makes no sense to me.

Hi Neal!

I have been able to get the sellers to go to court on their own and offer a reasonable explanation why they need an extension and get one. I don't think it's hopeless. Keep doing what you're doing and pray for a friendly voice on the other end of the phone. There are some lenders that actually are helpful.

Kieran

Neal thanks for sharing the story!

It's a sad and tough situation... there are no easy answers and I've found the most you can do is listen and brain storm together. Sometimes these consults can empower the homeowner to keep going and try for a solution other than just walking.

I too wish they had called you earlier when there were more options.

Great job on your farming too! Sounds like you are the neighborhood go to guy!

Neal~ I have had clients in the same situation before. It was really hard for me to realize that it was just too late to do anything. I remember thinking the same thing, WHY did they wait so long?

If there is was communication barrier/breakdown, it would be interesting to know if it existed when they signed the original loan docs. I hear far too many stories of immigrants (I am only assuming the parents are immigrants since they do not speak English) getting into loans they didn't fully understand, only to have the home be taken from underneath them. Sure, there is some blame on both sides, but I've also heard of way too many unethical folks who profited from such scenarios; without regard to -- or concern of -- the borrowers lack of understanding.

What many people may not realize is that latin America thrives primarily on cash. Borrowing and financing is a foreign concept to many who migrated to America. Although they try their best to understand, in such a complex undertaking, it is very easy to be misled...especially when you put your trust into someone to guide you through the process, as many did with real estate agents, lenders and brokers.

Neal - I am so glad you wrote this...people are so out of touch with what is really going on ... It is a mess and I wish they had called you sooner... a sad story but a good post.

denial is not a river in egypt. that is the biggest problem, many homeowners could be helped in they would just ask.

Well...that absolutely broke my heart, especially for a Monday morning...I wish them the Best of Luck, maybe something good will come out of this situation.

Thanks for a realistic post.

Cheron Lange

Neil,

You can't put the blame on yourself, these people closed their eyes too long. Short sales are so difficult. We had a property we were interested in Estero FL that was a short sale and put down a deposit, never had a reply from the bank. Now it is in foreclosure, there are just so many of them, especially in your area, the folks are losing jobs and doubling mtg payments, such a shame.

Neil,

Good luck on this one. I have often seen that some people don't know where to start when it comes to foreclosure. The legal terminolgy that is spoken is too difficult for normal day to day people expecially when there is a language barrier to start with. Hope all turns out well.

Peggy

Even though I am still a little new to this neck of the woods... I definately understand the frustration in dealing with some of these banks. I have had sellers that I have been dealing with for the past few months and even though I feel horribly sad for their situation- I will be glad when this is over.. I have lost 2 buyers because of no cooperation from anyone sane in the "loss mitigation" department. I am trying to stay away from any and all others like this. Good luck and I hope it works out for the best.

Kieran,

I just spoke to them...they called the courthouse but because we are in the middle of bad weather...the court house has closed for the day so I won't know anything else. I did tell them to call the bank and demand to talk to a supervisor. They did tell me their package was finally there..but I'm sure it will be lost again as this is a big problem.

Sale Pros,

That's what I was hoping for but even my attorney can't give me much to go on other than to go down and answer the extension to buy time.

Vickie,

Now I know it was because the tenants didn't want to let anyone show the property so they didn't even bother to list it until they got them out so now we are 5 months later. I would have suggested them to work it out with the tenant peacefully but I guess they took their own advice.

Jesse,

I know of one similar that an attorney found a loop hole in the documents that were never executed on part of it so they have a good case..not mine but one I know of from another person who I know.

Shannon,

It's bad enough to deal with these loss mitigation departments but when the guys in the mail room are losing paperwork...that's even worse of a problem that is causing time to really effect the whole process.

Michael R,

Face it...not everyone in the public really understands this process. They don't realize the foreclosure is totally a different thing that won't stop unless you go stop it.

Cheron L,

Thanks and I'm glad you read it as I hope others read it.

Christine,

Of course not...that's the problem..no response...what in th world are these people thinking?

Peggy,

I'll need more than luck and that's why I'm only on the sidelines for now before I commit to unrealistic time line. I'll need 5-6 months to take this on.

Neal, have they looked at loan modification as opposed to a short sale? I have seen loan modifications done even with 6-8 months past due.

Thomas,

Thank you for the suggestion but it was thought of until they told me the wife lost her job. They only have on salary coming in and can't afford it...they are to the point that they cannot carry it no matter what the payments would be...thanks

Neal - I do not hide from facts. I tell the people that ask for my help that they have to put them selves first. The primary goal is to be in affordable housing. The outcome of the "mortgage" crisis is secondary to the preservation of housing. I would have listened and told them....find a new home..NOW.....then we can deal with the possible sale of this property. By the time people reach such a delinquent status, the mortgage holder has exhibited all they are going to do to resolve the problem.

Hey Neal the Real Deal// Whats up...These deals are what drove me out of short sales...My record was in dealing with a couple who had played the system for 17 months...and still had no money to move...

These situation is hard to deal with..I remember when you said they got more info from you than they did the lawyer for his fee...To bad they did not offer to pay you..Your time is valuable too...I agree with Lenn obviously...I would ask them how much they had put back to get another house...at this point theres not muchleft to do..Sorry Neal

Tina,

Try to make sure you explain to your buyers that those deals are unknown whether or not they will make it through and if they don't have months to be patient then they need to find one that's not selling short.

John,

They relocated out of the area and I guess they are renting now because they only have one salary. Whether or not that is true..they already have a place to live....there is a slight possibility from what they told me today that I might attempt to list is and see what transpires but they gave me some information today from the bank that I find hard to believe...let's see what happens.

Mike,

Let's see what happens ...I gave them an idea as a last resort to try ...I might list it as per their request but with the notion there is no shot so I'm not worried..I'm going by some information the bank passed onto them but am not at liberty to discuss it yet.

Neal, I haven't read all of the comments but as one who had not done any foreclosures but a few short sales I am wonderfing if they would qualify for a shor sale if they are not living in the home? Would that depend on why they moved (ie because of a job)? Well, no matter what it is very sad. You are a pro at this. I wish they had called you sooner.

Diane,

That's true but I keep hearing banks are now allowing them....we shall see.

Neal, I have been so lucky not to run into many problems such as these. My heart breaks for the family and the fact that you have to live with their pain! Here's a long shot of an idea. I have trained to become a loss mitigation specialist and have found that banks...or at least most of them will consider this.

If you contact the loan department and find the right person to visit with you might ask if they would consider this...instead of the costly nature of the foreclosure, if the people are still qualified after regaining a job or getting over illness or whatever the bank might consider placing the back payments at the end of their note. Our banks in Texas are doing this a lot. I was able to save one ladies home this spring and she was five payments behind. I don't know their situation but it is always worth a try.

Good luck to you and to them. I am sorry they are having so much trouble!

Later in the rain~Deb

Deb,

It's ok but saving the home is not going to work...they had to move in order for the husband to work and his wife wasn't as fortunate but it's a good idea...thanks

Good example of a bad situation. I've been involved in ugly short sales but not one that bad.

How sad - I too have found it impossible for banks to receive and account for paperwork.

Neal, What a heart breaking story. I'm so thankful they found you, though it sounds as if they are up against a wall. How sad. I'll be so glad when all of these hardships are behind most of us. Lord knows how much longer all of this will go on?

Hang in there, and give yourself a big pat on the back for guiding them as well as you have! Your professionalism shows!

Jim, it's all too true that many families are suffering in this market downturn. I'm pleased to read how caring and helpful you have been in trying to assist this family in need.

we just got a new REO today... and it is good for us, and a disaster for those who lost it. what a drag for them. hate it so... guy has lost more than 50% of his income... through no fault or lack of responsibility on his part at all. It's the oil bidness, texas style, that did him in.

AUG

2008

Neal, I have an aquaintance here in Birmingham that it almost seems as though the bank wants to take the house. Its good to see people that care like you helping people.

Seth,

I'm never surprised at what we go through in RE and there will always be another story that will top this.

David,

We have to literally call once a week to make sure they still have it.

Elizabeth,

If there is a way out then I'll try to find it. If not then ...I'll just move on and they will have to as well.

Vickie,

Jim?...who is Jim?

Gary,

REO's are much easier to deal with. I had one a few months ago and the process was much easier to get closed.

Jason,

I could understand that there was a time when banks would want to hold inventory but now they usually sell them for less than the short would get. They really should look at those stats on how much money they lose and how much more if they foreclose. I guess they would rather keep losing money.

Great blog, what an example being set.

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