Sellers.. Tell All....What Happend Behind the Scenes.. Has This Happened To YOU?

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Real Estate Agent with Chase International 01366299

As I was sitting here this am, I was thinking about some clients I just met with regarding their pending short sale.  It was an interview situation, but they were so thrilled to actually meet with an agent that was more compelled to exploit their awful financial situation to the newspaper regarding the lack of compassion on the "lenders part ..name not disclosed). 

As I sat and read through the papers of the loan modification that was signed in 07, I realized these people were being taken to the bank!  Literally!  The loan was set up for failure no matter what!  In 07, I think we were beginning to see a dramatic change in our Real Estate environment, yet lenders, small mortgage companies were still trying to sale products that would only kill the client!  These clients, like most that have been affected in today's short sales, happen to be in their 80's.  They have been in the home for years!  A family home!  You know the story.  Parents died and left the house to the siblings.  Siblings wanted to sale. One sibling wanted to keep and live in the home.  Hence, the one sibling bought everyone out by taking out a loan against the home!

This seller signed a refinance in 07, a 5 year interst only loan to come due in 12.  The payment's were acceptable at that time, with hopes the market would be better prior to 12 for another refi.  Well kids, I am not so sure they read the clause that stated:  "If the home value drops below a 115% of loan value, the lender could increase the monthly payments to cover the loss in house value."   REALLY?  Did they explain this in full detail to the client?  Guess not!  They are now in bankruptsy with a loan that the bank WILL NOT perform a loan modification on.  WHY  NOT? Their credit scores were solid.  Interest rates are lower than their 7.35% from 07.  

REALLY MORTGAGE BANKS?  You are going to make an 80 year old man, with good credit (at least he did), forclose on his home because you don't want to perform a loan modification on his home?  

What has the mortgage industry come to?  I would love to hear if this is happening to anyone else?          

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Rainer
18,035
Marlene Shelton-Giles
"Above The Crowd" - Lynchburg, VA
RE/MAX 1st Olympic

OH I AM NOT SURPRISED, SO MUCH FOR THE MODIFICATION, NOT SEEN ONE YET.. I HAD ONE CLIENT THAT HAD A HIGHER THAN NORMAL PAYMENT,  I WENT BACK TO HER AND ASKED TO SEE HER DOCS.. HER MORTGAGE INSURANCE WAS OVER 500 A MONTH !!!

ON THE OTHER HAND, I HAVE SEEN SELLERS THAT TOOK ADVANTAGE OF THE MARKET, THEY STILL HAD JOBS AND JUST DIDN'T CARE. JUST QUIT MAKING PAYMENTS,, SHAME ON THEM...

 

MARLENE SHELTON GILES ,RE/MAX 1ST OLYMPIC LYNCHBURG, VA.

Sep 22, 2010 04:52 AM #1
Rainmaker
522,122
Mike Carlier
Lakeville, MN
More opinions than you want to hear about.

There are lots of questions that can only be answered by the borrower.  Were the terms explained adequately?  Only those present know for sure.  I think the folks who received the money may owe a little modification relief to the buyer.  After all, they are siblings and ought to have some compassion.  I'm not a huge advocate for banks, but there are a few others who are enjoying the fruits of someone's eventual misfortune, aren't there?

Sep 22, 2010 05:29 AM #2
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Rainmaker
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Kimberly Moore

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