HAVE THE BANKS LOST THEIR MIND? What's really going on on Short Sales?

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Education & Training with Real Estate Expert Witness Support
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Have you had crazy behavior from banks on Short Sales.  Just when I thought it was getting better,  they continue to act weird.    That is scary since these are very sophisticated organizations.  For example,  Chase once told me that unless we paid the water bill upfront,   they would not consider looking at our documents.  And,  I asked,  why would we do that when you might foreclose anyway.  That is our position, they said  and hung up.   I presented a short sale and they foreclosed anyway.

I have had another experience twice recently.  Homeowners try for a loan mod,  in one case almost a year.  They are turned down.  In once case,  the borrower was unemployed for 9 months and would never qualify.  So,  I prepare all the paperwork to list the property,  and they get a letter from the bank saying,  ......you are a candidate for a loan mod. Yeh,  sure!!!!!   Even thought I tried to explain that they somehow got on the Preprinted letter list,  they felt they have to try again. So,  here we sit.

I have to believe there must be some hidden incentitive for them to do what they are doing! What do you think??

 

Guy Berry

Keller Williams

http://www.guyberry.com

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Rainmaker
515,520
Tina D Saporito, Your Dedicated Palm Desert, CA Realtor Since 2005
Ronald Christopher & Associates. Proudly serving Palm Desert, La Quinta, Indio, Rancho Mirage, & Palm Springs. - Palm Desert, CA
Call (760)799-8460. www.JustListedinPalmDesert.com

Paying utility bills upfront is the first I'veheard of. Nothing seems to surprise me much these days, I learn something new with every short sale file.

Oct 18, 2010 11:43 AM #1
Rainmaker
290,113
LaNita Cates
REMAX of Joliet - Joliet, IL

Yes Guy. There is NO doubt in my mind that banks have lost their mind. When you can take a file OFF their short sale "pile" because one document is missing - although you've emailed/faxed it 10 times. They have def lost their minds!

Oct 18, 2010 11:48 AM #2
Rainmaker
496,911
Patty Clark
Morningside Homes, LLC 720-231-5200 - Denver, CO
Helping Families Move with Care

The banks are their own worst enemy. They are supposed to be helping homeowners but instead they are just trying to make themselves look good by offering the mod's. If the home has lots of equity they want to foreclose and resell it to make a huge profit,  The longer the banks stall in making the modification the shorter time it is to foreclosure and not being able to sell it,

Until the banks do what they say they will do this housing mess will just get worse.

Oct 18, 2010 11:49 AM #3
Rainer
38,015
Guy Berry
Real Estate Expert Witness Support - San Jose, CA
Real Estate Broker and Legal Expert

I don't usually agree with Arianna Huffington on anything but she is suggesting we stop dealing with these mega banks and start using our local banks.  what do you think??

Oct 18, 2010 11:51 AM #4
Rainmaker
526,160
Dave Halpern
Keller Williams Realty Louisville East (502) 664-7827 - Louisville, KY
Louisville Short Sale Expert

Too often the banks purposely turn down good short sale offers.

We recently had the lender's loss mitigation person tell us that they're turning down a market value short sale because FHA will reimburse them more.

That's another example of why lenders turn down short sales only to have the house resell as an REO for less.

Oct 18, 2010 11:52 AM #5
Rainmaker
502,426
Ricki Eichler McCallum
CastNet Realty - Corpus Christi, TX
Broker,GRI,ABR, e-Pro, TAHS

Hi Guy,  I'm with you, let's use the smaller banks and tell the others to take a hike.  Get back to some common sense!

Oct 18, 2010 02:06 PM #6
Anonymous
Joe Smoe

The reason the banks wants to pospone foreclosures and entertain more modification is.....lenders are getting paid by OBAMAS bailout called loan servicing fee.  The longer they ride these bad notes...the more credit they get. 

The Republicans...doesnt agree with these process.  They would rather clean out all these foreclosures...either foreclose...give it back to bank...and stop giving incentives...because all these incentives are coming out of taxpayers pockets!

 

Jan 20, 2011 11:08 AM #7
Rainer
26,873
Paul Caloca
The Papas Group (DRE #01766524) - Scotts Valley, CA

Geez wiz! We live in interesting times!

Feb 04, 2011 08:30 PM #8
Rainer
154,570
James A. Browning
Browning Real Estate School/REO Institute - International, IT
MRE REOCertified(R) SSCertified

Thank you for sharing your blog; we need Real estate Professionals to share their comments and information regarding their markets and experiences. Thanks again from beautiful Colorado; Spring is here in the Rocky Mountains

May 07, 2012 02:41 AM #9
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Rainer
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Guy Berry

Real Estate Broker and Legal Expert
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