Special offer

Will the Bank Get It Someday? Probably Not!

By
Real Estate Agent with Keller Williams Realty 01702953

I ran into a previous client today.  I had tried to conduct a Short Sale for her back in 2007 to 2008.  I had priced the home at $199,000 and received 8 offers.  After the bank conducted it's appraisal and against my strong objections, they determined they would take nothing less than $259,000.  I tried to get the negotiator to come to her senses and warned her and later her supervisor that they would be taking this home back if they didn't accept the sale now.  All 8 of my offers walked and the house didn't sell.  It went back to the bank in December of '08.

Of course, after speaking with her, the first thing I did when I got back to the computer was search the MLS for the old property.  I was curious what the home sold for and when.  I wasn't surprised to find that it was still on the market after going thru 3 REO agents.  Today, it is listed at $187,000.  Values have come up slightly so it's only about $10,000 over priced today.  But it still hasn't sold.

It's been a year and 3 months since the bank could have sold this home for $199,000.  During this time they've been paying the outrageous $300 HOA fee per month.  According to the current MLS, they recarpeted, installed new appliances and painted the entire interior of the house.  They've kept the house clean and the yard done.  All of which cost the bank money.

I would love to be able to call the negotiator and her supervisor back to say "I told you so", however I know it's to no avail.  But it's frustrating to know that I could have accomplished something and was not allowed.

The banks seem to be doing better.  But...will they ever really "get it"?

By the way, if you or someone you know is at risk of losing a home to foreclosure, please know that there are new options available to avoid this devastating occurrence. And know that there is someone here you can trust to help. As a Certified Pre-Foreclosure Specialist, I understand the ins and outs of Short Sales and Loan Modifications. I am also a Wachovia and World Bank trained Pre-Foreclosure expert and well educated in the Government’s new H.A.F.A. and H.A.M.P. programs for helping homeowners facing foreclosure.

CLICK HERE TO AVOID FORECLOSURE

Are you a buyer looking for a home?

CLICK HERE TO SEARCH ALL AVAILABLE HOMES

CLICK HERE TO READ WHAT OTHERS HAVE SAID ABOUT MY SERVICES!

Posted by

Ray Wright - Inland Empire Realtor

Are you a seller interested in knowing the value of your home? CLICK HERE FOR YOUR HOMES VALUE

Are you a buyer looking for a home? CLICK HERE TO SEARCH ALL AVAILABLE HOMES

CLICK HERE TO READ WHAT OTHERS HAVE SAID ABOUT MY SERVICES!

Ray Wright - Certified Preforeclosure Specialist

Foreclosure Prevention Help!

By the way, if you or someone you know is at risk of losing a home to foreclosure, please know that there are options available to avoid this devastating circumstance. And know that there is someone here you can trust to help. As a Certified Pre-Foreclosure Specialist & a H.E.L.P. Certified Specialist, I understand the "ins-and-outs" of Short Sales and Loan Modifications. I am also a Wachovia and World Bank trained Pre-Foreclosure expert and well educated in the Government’s H.A.F.A. and H.A.M.P. programs for helping homeowners facing foreclosure.  Contact me NOW!  951-312-3133 or email: Rayt@WrightTeamRealty.com

CLICK HERE TO AVOID FORECLOSURE

Ray Wright - Realtor

Ray Wright

Wright Team Realty

Direct: 951-312-3133

Email: Ray@WrightTeamRealty.com

Find me at:  www.RayWrightSellsHomes.com

Comments (64)

Lyn Sims
Schaumburg, IL
Real Estate Broker Retired

Banks are idiots and know nothing about selling real estate. There could be scores of testimonials like yours where they've gone wrong.  After awhile you just shrug your shoulders at the whole thing.

Mar 16, 2010 08:15 AM
Ted Tyndall
Davidson Realty Inc. - Saint Augustine, FL
I will help You find the Home YOU want to Buy

You are so correct that the guys that are putting the numbers together are not always up to date on the maket of that neighborhood. They do go by numbers and not always realty.

Mar 16, 2010 08:35 AM
Norm Werner
Real Estate One - Milford, MI
Helping the first time and every time

If the bankers ever appeared on Judge Judy she would look them in the eye and say. 'You're an idiot."

Mar 16, 2010 09:30 AM
David J. Lampe
Your Castle Real Estate - Arvada, CO
Realtor - Web Savvy Denver

I wish the lenders would get it but I doubt they ever will.

Mar 16, 2010 11:29 AM
Vickie Nagy
Coldwell Banker Residential Real Estate - Palm Springs, CA
Vickie Jean the Palm Springs Condo Queen

Ray, I only wish the lenders would read our posts on Active Rain and try to understand reality in the trenches.

Mar 16, 2010 11:47 AM
Robert The Earl of Real Estate
St Pete LUXE Living Group - Saint Petersburg, FL
The Earl of Real Estate

Time and Time again we see stories like this and scratch our head.  Think of the negative ripples caused by the banks.  Too sad.  We are here to serve, have committed our careers to it, now mr and mrs bank, step back and let the pros do the job.

Mar 16, 2010 12:05 PM
Devon McCabe
Re/Max - Riverside, CA

Congrats on the featured post.  Good story!  I've had the same problems in the past.

I won't name names but it sure would be nice if those that commented on blogs would share but not use it as a opportunity to badmouth/tear down the blogger or try to make the blogger look bad and make themselves look like they know more about the subject the blogger is discussing.  I'm sure there's more to the story he/she is blogging about.

Mar 16, 2010 12:16 PM
Brad Officer
Brad Officer Real Estate - RE/MAX Specialists - Jacksonville, FL
Jacksonville REALTOR

3 years ago and we are still having the same problems today.  Seems the banks are the only ones who haven't read the paper. 

The BPO concept is such a mess.

Mar 16, 2010 12:21 PM
Chris Olsen
Olsen Ziegler Realty - Cleveland, OH
Broker Owner Cleveland Ohio Real Estate

I can see your point and Katerina's as well, too many connection points sometimes.

Mar 16, 2010 01:17 PM
Karen Fiddler, Broker/Owner
Karen Parsons-Fiddler, Broker 949-510-2395 - Mission Viejo, CA
Orange County & Lake Arrowhead, CA (949)510-2395

No....they won't learn. I really think the stockholders need to start yelling, they are losing money by dragging their feet and doing the wrong thing.

Mar 16, 2010 01:56 PM
Dawn Maloney
RE/MAX Trinity Northeast Ohio Real Estate Specialist - Hudson, OH
330-990-4236 Hudson & Northeastern Ohio

I agree with Tim - better the bank take the losses than the buyers - I pity the sellers though.

I'm with Katerina - they aren't just banks, they're banksters.

Mar 16, 2010 02:46 PM
Clayton Bonjean
Mainsail Realty Company - Santa Rosa Beach, FL
Broker | Owner | MBA

Ray,

Congatulations on the Featured Post!  I have dealt with this as well and it is very frustrating.  They do seem to be coming around a bit, but you still have to spell it out for them.

Clayton

Mar 16, 2010 02:56 PM
Lisa Bosques
Burien, WA

Definition of the word negotiate: to confer with another so as to arrive at the settlement of some matter

Maybe we need to come up with a different word for these people. 

That being said, Katerina makes a great point about the dreaded BPO.  That's what really does everything in.

Mar 16, 2010 03:26 PM
Christine Donovan
Donovan Blatt Realty - Costa Mesa, CA
Broker/Attorney 714-319-9751 DRE01267479 - Costa M

It's really unfortunate when the "values" the banks set and the values of the market just won't mesh and everybody loses as a result.

Mar 16, 2010 04:33 PM
Gail Robinson
William Raveis Real Estate - Southport, CT
CRS, GRI, e-PRO Fairfield County, CT

Katerina has so much knowledge about this subject.  I have stayed away from short sales as both a listing agent and buyer's agent.  I refer them out to others who have expertise in this area.  Not something I want to be an expert in.  I like helping my buyers purchase foreclosures, however.  That's one thing I'm good at and they've gotten some amazing bargains.  None of the foreclosures went through the short-sale process first.

Mar 16, 2010 04:33 PM
Athina Boukas
Virginia Capital Realty - Richmond, VA
Certified Residential Specialist (CRS)

Let the bank take the hit...as long as (and this depends on the state) they don't go after the borrower for the difference (deficit). That would be something to fight against with a paper trail of these offers.

Having worked for a bank way back in the last recession I know how frustrating it can be for the individual employees.  They have to go through the process and due diligence...no one person..even those with "common sense"... have the authority to act on the "best case scenario" And that's too bad for everybody.  Someone higher up needs to empower those in the trenches to make the right decisions and hire "better experts" in the field.

 

Mar 17, 2010 03:08 AM
Sandy Wagner
RE/MAX Professionals 253.225.8322 - Gig Harbor, WA
Short Sale Specialist Tacoma, WA, and Gig Harbor,

This is one of the terribly frustrating things about doing short sales. How they're handling these distressed properties just does not make any sense most of the time. There are a few that go through very smoothly, but very, very few. Sigh!!

Mar 17, 2010 04:56 AM
Richie Alan Naggar
people first...then business Ran Right Realty - Riverside, CA
agent & author

Ray thanks for sharing what most of us are going through and have been through for that matter. The banks only know what we the agents tell them. The BPO's are easy to read and understand. So how do you explain the bank being out of touch here? AND, yes you want to call them up and do the I told you so.....but they are not professionally or emotionally attached to this which could be the problem to begin with. I had one lender heading down this path and I wrote a very convincing letter explaining and supporting all my statements and the consequences of not taking my recommended action. Much to the banks credit, they revisited the situation and we had a Disney (happy) ending here. By the way, I did not report this to the negotiator's supervisor all during our communication. I let the paper trail speak for me and I gave room for the negotiator to correct herself. The strategy proved correct. Ray....thanks for this post so that we can share and become the best at what we do. I am learning so much here.

Mar 17, 2010 06:53 AM
Esko Kiuru
Bethesda, MD

Ray,

It's mind-boggling how blase banks are about managing their REOs. They have people with no experience whatsoever in real estate sales running these departments and it shows.

Mar 17, 2010 08:31 AM
Jerry Morse
The Morse Company - Janesville, WI
BBA,GRI

Hi Ray,

It has been happening here in Wisconsin too.  Sometimes I think the REO asset managers think the agent is just looking for a quick sale.  Unfortunately, they do not know the local market.

 

Jerry

Mar 18, 2010 11:53 PM