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You Can't Help them All... But some you can!

By
Real Estate Agent with Donna Homes, powered by JPAR - TexasRealEstateMediationServices.com 0480809

I met with some nice people Sunday afternoon.  They were foreclosed on about 2 weeks ago.  The problem?  They were never once late on their mortgage payment!

What?  They made their mortgage payments on time every month?  YES, they did...

The thing is, they fell upon some hard times a few months back and missed paying their property taxes.  The lender decided to pay their taxes for them, and instate an escrow account. 

The problem this time?  The home owners didn't get the notice that they were to pay an escrow until the bank already noted them as 6 months behind on the escrow.  Can they do that?  I had never heard of this before.  They didn't even know they were being foreclosed on until their March mortgage payment was sent back to them.  Yes, it was sent back!  The bank didn't even want to cash it.

That was the end of March and the foreclosure went through 6 weeks later. Yes, that fast!

The story will have a happy ending. The lender is wanting to work with them and help them with a loan modification to let them buy back their property.

However, there are many people where this is not possible. In order for this to work, they must show documented income. Many people can't do that. Many people are doing odd jobs here and there just to make ends meat and some people are self employeed. Those types of jobs would not work for this program. 

These people were so glad I was able to get them in touch with the right people to talk with. 

Funny twist, the husband was a Realtor...  Many of us pretend to know how things work, but do you really?

Don't let a foreclosure get you down, especially if you know it was wrong. Many banks are working with people to help resolve their mistakes.  Granted, some people are being foreclosed on for a good reason.  Others just slipped up and deserve a second chance... if they qualify.

**Are You Packed Yet?**

Donna Harris, REALTOR®
RE/MAX Austin Skyline
www.DonnaHomes.com
Donna@DonnaHomes.com

Austin, TX and the surrounding areas of Lakeway, Bee Cave, Westlake Hills, Cedar Park, Round Rock, Spicewood, Circle-C, Steiner Ranch, and everywhere in between... Whether you're buying or selling, I'll be with you through the entire process.  

Amy Salisbury
Leading Edge Properties - Charles Town, WV
West Virginia Realtor/Jefferson/Berkeley

Donna, I've NEVER heard of this happening before.  Thanks for the heads-up.  What a rotten shame for these folks.  So glad you are there to help them through this!!!

May 18, 2009 08:36 AM
Terrie Leighton
Ferrari-Lund Real Estate - Reno, NV
Reno Real Estate Agent ~ Selling Homes in Reno

Donna ~ I have never heard of such a thing happening to anyone either but I am very glad the the bank is willing to work with those people to buy back their house! How scary!

May 18, 2009 08:42 AM
Heather Fitzgerald
REALTY WORLD-Harbert Company, Inc. - Greenwood, IN
REALTOR Greenwood Indiana Real Estate

Amazing story, and scary that he didn't know how to push as an agent all the way to sitting on the White House lawn.

May 18, 2009 08:45 AM
Donna Harris
Donna Homes, powered by JPAR - TexasRealEstateMediationServices.com - Austin, TX
Realtor,Mediator,Ombudsman,Property Tax Arbitrator

Amy, I hadn't either, and I wonder how they got away with it.

Terrie, And I'm sure it'll be the same price plus a lot of expenses of fees and such. But it's better than not getting their house back.

Heather, Apparently it happened so fast, they didn't know what hit them.

May 18, 2009 09:03 AM
Jeanna Martinez
RE/MAX Access - Schertz, TX

Donna - Wow that is just horrible!  I had not ever heard of this before either....it just makes no sense for the bank to not inform them until just before it all happened!  Then again, banks don't always make sense!  I am glad you were able to help them!

May 18, 2009 09:11 AM
TIM MONCRIEF
Tim Monciref - Austin, TX
Over 2,000 homes sold…..

That is terrible.  Some are merely from stubborness.  I have a client that will not bend over $10k on a home knowing the bank has it...and I threw a point in to help.  This home is in a limited partnership and he said let the bank take it if the buyer don't.  The buyer's did not, and the process is starting.  This is a half of a million dollar home.

May 18, 2009 09:21 AM
Kathleen Daniels, Probate & Trust Specialist
KD Realty - 408.972.1822 - San Jose, CA
Probate Real Estate Services

Donna, What an interesting story.  Truth is the banks don't know what they are doing. Banks have traditionally been in the business of lending and collecting. Banks simply don't know what to do with the mortgage mess that has been created.  It's great that you got them connected to the right source to help them "buy back their own home" and I hope it is for al lot less!

May 18, 2009 09:26 AM
Joseph D. Federico
MVP Realty - Naples, FL
Southwest Florida Homes with Joe Federico

Donna-I have never heard of such a thing, how terrible it is for the banks to act in this manner.

May 18, 2009 09:50 AM
Donna Harris
Donna Homes, powered by JPAR - TexasRealEstateMediationServices.com - Austin, TX
Realtor,Mediator,Ombudsman,Property Tax Arbitrator

Jeanna, And don't forget there will be another side of the story...

Tim, Bickering over $10k in that price?  What?  Crazy!  I'll talk with you later this week!

Kathleen, That's very true, and many banks are hiring more people to take over stuff.

May 18, 2009 09:52 AM
Gary Woltal
Keller Williams Realty - Flower Mound, TX
Assoc. Broker Realtor SFR Dallas Ft. Worth

Donna, they will take your house away faster with the delinquent taxes than the delinquent mortgage. Glad this story had a happy ending.

May 18, 2009 11:05 AM
Angelia Garcia
Pure Realtors - Dallas, TX

Sad, so sad.  They were lucky to find you.  Good job.

May 18, 2009 12:38 PM
Barbara S. Duncan
RE/MAX Advantage - Searcy, AR
GRI, e-PRO, Executive Broker, Searcy AR

That is a new one.  I never heard of such a fast foreclosure or one for just an escrow payment.  I'm glad you helped.

May 18, 2009 01:07 PM
Donna Harris
Donna Homes, powered by JPAR - TexasRealEstateMediationServices.com - Austin, TX
Realtor,Mediator,Ombudsman,Property Tax Arbitrator

Gary, But the actual taxes were paid, so it's still just an escrow account.

Angelia, Thanks.

Barbara, I wonder if it'll be more common to go so quickly.

May 18, 2009 11:42 PM
Patricia Kennedy
RLAH@properties - Washington, DC
Home in the Capital

Whew!  Donna!  This is a really scary story!  I'm glad it's working out for them.  Geeze the banks are stupid about this stuff!

May 19, 2009 12:59 AM
Donna Harris
Donna Homes, powered by JPAR - TexasRealEstateMediationServices.com - Austin, TX
Realtor,Mediator,Ombudsman,Property Tax Arbitrator

Pat, Stupid isn't quite the word I was thinking!!

May 19, 2009 07:59 AM
Donna Harris
Donna Homes, powered by JPAR - TexasRealEstateMediationServices.com - Austin, TX
Realtor,Mediator,Ombudsman,Property Tax Arbitrator

Joseph, Sorry, you got lost up there in between one of my replies. And yes, the banks need t learn better manners!

May 19, 2009 02:44 PM
Karen Anne Stone
New Home Hunters of Fort Worth and Tarrant County - Fort Worth, TX
Fort Worth Real Estate

Donna:  It is just amazing how things like this can happen... and that the sellers can truly be unaware of it.  I have heard of this happening more often than I care to.  Poof... your home is gone, and you had no clue it was happening.

May 23, 2009 05:08 PM