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Banks still don`t "GET IT" in regards to Foreclosures!

Turn off the TV, stop listening to the media in regards to the Lenders attempting to quell the housing market fiasco!

It`s not true. The Lenders are still in denial and no matter what the media or Washington proclaims it`s alot of BS!

We just closed a $55,000 condo in Hollywood.The seller had to evict a tenant prior to closing, the buyer was playing games, which is typical and the Lender placed a GUN to our heads in regards to a $500 water bill.

No matter what was done the lender decided they wouldn`t pay the water bill. We couldn`t close until this matter was resolved. You would figure with all the money being handed to the lenders they would cooperate?! Heck no! They flat out refused to deal with us and expected the Realtors to ante up!

It`s a matter of principal, but we refused.

Up until the 12th hour nobody blinked, it looked grim.

Finally, the attorney`s asked everyone to split the difference of $80 per person. Talk about disgusting. The lenders are clueless to what`s going on in the world as long as they have their way it`s business as usual!

It`s not good!

Posted by Scott Daniels Florida Real Estate 2.0. Agents Earn 100% Commission. on 03/16/2009 05:46 AM

Comments (37)

Foreclosures and Short Sales in the ActiveRain Channel

understanding a foreclosure or short sale in broward county florida real estate

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37 Comments on Banks still don`t "GET IT" in regards to Foreclosures!

MAR

Scott, That why I dont try and deal with them. Its more of pain than what its worth. All of that over 500.00 is crazy!

"The lenders are clueless to what`s going on in the world as long as they have their way it`s business as usual!"

Maybe those same lenders ~should~ be listening to the media when it comes to employment stats and the economy. :-)

A lot of work for a 85 K condo. .

No Scott. It isn't good. The banks get by with what they do

because they can.

I've taken my business account out of a bank that took TARP money. I didn't even want to walk into the place any more. I'm totally in small local banks now.

I agree it is so frustrating to be in the trenches....knowing that half, if not more, of what is being said in the media...about how banks are helping people is nonsense.

Scott- I learned a long time ago, if they can stick it to us they will try. Everyone needs to play by the same rules- in essence we are contracted to perform a service. Did the lawyer anti up? I think not.

Amazing that when concessions are made the Realtors are expected to "ANTE U"... what other business does this happen in?

I've been waiting for somebody like Lenn to bring the topic up of protesting by withdrawing money and banking with responsible local banks.

I did that long ago...

I agree they don't get it and they will only do what they are forced to do.

Our general manager, says you haven't been in Real Estate until you've bought a Refridgerator!

Anyway, I've thrown in money, cut commission and bought a Stove! to make deals work. My motto, is Whatever it Takes!

I hate it when you are forced to be the good guy. Love being the good guy but not because someone else isn't doing their job, accepting reality...or in the banks case, think they have carte blanche

wow - that's kind of pathetic! Banks are NOT in this to help or alleviate any of the stress.

It appears the banks can do whatever they want to do and get away with it.

standing by iron railing Hmmm! In the media that I have read and watched, the US banks are not coming across as the proverbial knights in shining armour at all.

Granted, you experienced a sick situation; however based on a documentary that Oprah commissioned and reported on, what you experienced was minor. According to this story, homeowners are walking away leaving new appliances, computers, tvs, clothes, their children's toys; rather than selling these items or giving them to charities, the banks are hiring crews to go in and put everything into dumpsters and take it to landfills. What a waste!!!

I could not believe what I was watching and listening to and it broke my heart to see some of these people ending up in tent cities. One couple were so humiliated, the mother continues to call her son who lives in another state, never letting on what has happened.

Sometimes I look at it, is it worth to not close a deal for 500? I have had to do just that, i rather close it then make it go south!

I have had to do that and it is not fun. I agree there could be more cooperation but when you want to close the deal after so much work. It is just easier to reach find a way to work together and do it.

Last week we defeated the city of Santa Fe's efforts to impliment a Real Estate Transfer Tax of 1% on the sale of homes over $750K. There explanation to the voters was that if the buyers had a problem paying it the realtors could pay it out of their commission.

People don't have a clue how our commissions break down as independent contractors.

Very nice post and you hit the nail right on the head with what you said. Back in the day a Bank could easily sit back and get away with not paying a bill, but in todays market its outrageous that they would take that kind of stand and your right it does show that they are clueless.

Good for you for standing up to them!!

They should have kissed your butt for bringing in a buyer. So where is it written that each person had to ante up $80? Agents really are not part of the deal, the parties are buyer, and seller.

These banks want to put the entire responsiblity on someone else. They just don't get it and they never will. Greed is the name of the game and if they can put the monkey on someone else's back, they will. I know agents who are spending their own money to turn on utilities for inspections, spending their own money to clean up the messes that are left behind by the previous owners, who are spending their own money - UP FRONT - just to get the listings from the lenders. They really aren't worth it, if we all just quit bailing them out one way or another, maybe they would take responsibility for their own actions.

...And these are the same banks who think they should be allowed to participate in the residential brokerage business. Not likely.

I have to agree. Funny thing is today I was negotiating a short sale with a local lender. The lender agreed that their pmi ccompany had approved the sale. I asked for a payoff letter and the loss manager says" I can't do that". I said, "what do you mean, ? How am I supposed to get you your funds?" He says , the debt won't be foregiven, it will go into collections with the pmi comapany." What the hell is that all about. The loss manager admitted he had never done a short sale before, but, what he hell - get a clue, you have to provide a payoff letter if you want to get paid!!! Clueless. . .

MAR

I agree as well, I recently had a client walk from a deal that we were under contract with for at least 3 months...the bank was not willing to budge on any repairs and my clients had already spent $2,000 for inspections and other expenses. It's really a shame that they are putting clients through this.

MAR

I agree they DON"T get it!

Hopefully the buyer's deal of $55,000 was good enough that they would pay the water bill. They need to look at the big picture.

Although it may be that they don't get it, it is still their world and we are just walking through

MAR

The buyer should have paid the $500.

I ask for a supervisor when I run into a pyscho deal destroying SS negotiator and so far, by the grace of God, every ridiculous request like this has been resolved. The only exception to this is when the buyer had an attorney with a SS negotiator that gave away (cut) our commission, AND forced us into a commission contribution AND forced the seller and buyer to kick in cash. The loss, when you figure the hundreds of hours invested far exceeded - by a multiple of 4 - the commission. The seller's lost their jobs as school teachers. They had an infant. 1 spouse had found a job in a new industry. They had to go to their church for help with cash close the deal. It is now my policy to negotiate my own deals, without exception, so I don't get thrown under the bus.

When I was doing my taxes I realized it cost me $47,000 to market homes in 2008. The banks see a $12,000 commission and think the listing agent won the lottery. The bank does not realize that 4 people running businesses share the money and it costs money to sell that home. For some agents a $12,000 commission could mean far less than $3,000. If there is a commission cut it could drop to $2,000. If the agents donate money the commission could drop to a $1,000. When you deduct expenses you have a Realtor who worked for free for 9 months or donated their time, donated money, took food out of their children's mouths and risked the financial stability of their home and family to help a seller and a buyer who most often don't even write a thank you letter. This is not sustainable.

For some agents, a sale just washes out a loss and the expenses of running their business. It is pathetic that banks take advantage of Realtors. Dozens of Realtors in my area have lost their homes and their life savings and all of their investments because they've wasted so much time on failed short sales listings and then been robbed on the closed short sale listings. While some Realtors kill themselves for sellers and buyers their personal finances fall apart.

You got it. Let's all look to the Realtors to pay. I've been in this business 30 years. I've seen this before and it is always the same. Let the Realtors pay for any problems. After all they are making all the money. Those rich Realtors can pay.

Things just never change.

MAR

The worst part about that is that us as listing agents make less than half of what everyone else does. So that $80 as a listing agent is about 15% of the commission. SAD.

It's not my specialty but I represented the Buyers and Closed two short sales and one bank owned property recently. I set realistic expectations with my Buyers, jumped through the usual hoops and in the end my clients owned real estate at an amount below market.

Scott you are right - the Bank's still don't get it. The experience was the same as previous years, my guess is the loss mitigation departments don't keep up on the latest news.

These are the same banks that by their own admission don't know the value of mortgage backed instruments on their own books (which is their business) so how do they know how to value and sell real estate?

Kent Davis

MAR

I hate to say it, because I'm 99% optimist . It drives my husband nut. UnfortunatelyI don't think the banks will ever get it. I think we just need to learn to adapt to it, we will all be better off, and happier (see how I am?)

MAR

The bank and the REO don't get it. Just yesterday I made a call from a sign, For Sale by Owner. Got a recorded message from a national bank. Finally got to talk to a person, they did not can a clue about the property. Could not even tell me a price or when we could look at it. She's a couple of states away. They act like they do not care. It's no wonder there are so many properties sitting.

Sorry to disagree, but banks DO get it. They know that if they sold off all of their foreclosures at once at foreclosure prices, they would be bankrupt. They do want to get rid of these properties, but they CAN'T give them away all at once.

MAR

That sounds like a lot of work for a $55,000 condo. I hope I do not have that same problem with my current short sale that has delinquent hoa dues.

MAR

It always amazes me that sellers, regardless of who they are, expect the Realtor to pay for things such as termite letters or treatment, repairs and even closing costs they didn't expect. It's not our fault their property was not properly taken care of. It has been my experience that buyers don't want the Realtor to pay for anything.

We are hired for a percent of the sale to bring ready, willing and able buyers and sellers together. Wouldn't you just love to walk into a bank and get them to pay your water bill for a year in exchange for opening an account with them.

Whenever I am working with a buyer on a bank owned property I forewarn them that we are just a number on a file to them. Our offer will get put on the corner of someone's desk somewhere in the US and may or may not get attention. They may or may not pay for certain things so expect it.

I have paid for many things too but also had pretty good luck, I think because I stand my ground. I once had a bank owned property listed and paid $1500. out of my pocket for repairs. The bank wanted to close and reimburse me after closing. I have not been reimbursed in the past and simply told them I either get paid at closing with the figures on the HUD statement or we won't close. My buyers agreed and the bank gave in.

MAR

As a VP for a large Savings & Loan during the S&L crisis in the 80's, I can assure everyone here that the Banks are doing exactly what they need to do to survive and be profitable. That's not to say that they aren't a pain in the you know what! As a Realtor now, I'm having some of the same problems. However, we all need to remember, that no so long ago, we had nothing but praise for these same banks when our clients needed to get a loan so we could all get paid. Tune in and see it from the bankers point of view, communicate on their level and you will start to see results.

Matt Mathews/Mathews Realty Group-Agent/Investor Specialist

APR

Matt, this is frustrating, but we need to keep trying and I believe it WILL change!

I heard horror stories like this one in class (I'm a newbie) and I am feeling it in the field. Thanks for sticking to your guns. Its a matter of principle, good honest business is what we need. I just gave up a $235k listing on principle, not going to pursue sign crossing... hang in there, we will all be ok.

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