NJ - Wiki leak's Editor, Julian Assange, recently said he would be releasing documents on a large US Bank. We decided to beat him to it and release some information on how a large US Bank caused their client to lose an estimated 40k because of their incompetence.
This is a house that I drive past pretty frequently. A while back I noticed that it look abandoned. I had my assistant look up the owner to see if they might want to sell the house. That's when we saw that the home had already been foreclosed. The house was foreclosed on February 4th, 2009. That's almost two years ago. Since we could not find who the lender was, we put the property aside.
Normally, after a bank forecloses on a house, they will put it up for sale within 2-3 months. Today, December 1st, 2010, they still haven't put the home up for sale. We looked into that property again a few months later and found out that a large US Bank's Loan Servicing Arm was servicing the loan on behalf of the owner. In July 2009, we talked to Ann at this lender's loan servicing office. She told us that they were servicing this loan.
She said if I had a buyer, we would need to contact the homeowner. "It's not owned by us. You need to contact the homeowner if you want to buy the house. The property has not yet gone to foreclosure sale," she said. We told her the house had already been foreclosed upon. We asked her if they ever communicated with the foreclosure lawyers. We also made sure we were talking about the same house. She confirmed that we were talking about the same house and confirmed the address and the foreclosed homeowner's name. "That's interesting," she replied. "My records show it hasn't gone to foreclosure. I'll check in with the foreclosure department and verify whether it has or hasn't been foreclosed upon," she said. Today, almost two years later, no one has followed up on this house. The loan servicer has been 100% incompetent with their actions on this house.
Here is who it appears owns the house today:
The Certificate Holders of the Morgan Stanley ABS Capital I Inc Trust 2005-WMC6 Mortgage Pass Through Certificates, Series 2005-WMC6. That means the owners could range from a pension fund, a large Wall Street Firm, or individual persons.
Estimate of Money Lost by the owner:
$40,000 to $50,000. This is an estimate of the amount of money lost because the house was not put on the market in the normal 2-3 months after foreclosure. This large US Bank's servicing arm has waited almost two years to put the home up for sale, and it still isn't on the market as of December 1st, 2010.
Here is how I came up with the estimate of loss:
We asked another agent what he had thought the house would have sold for previously. We both agreed that if the house had been listed in April 2009, that it would have sold quickly. This is because spring is the peak selling season. We both agreed that it would have sold for between $140,000 and $150,000. Today homes similar to this one are selling for $90,000 to $100,000, depending on the condition. This home is in pretty bad condition. So, we can conservatively estimate the loss because of a reduced selling price to be: $35,000 to $50,000.
That isn't factoring in an estimated $12,000 in property taxes that have accrued during these past two years, nor lost interest if the money had been loaned to someone else.
I am going to give the same answer that Mr. Assange gave as to who the bank is.... First, it is a large US bank. If you were to ask, "Is it the largest US Bank?" then our answer would be: "No Comment."
This is a great example of why a bank owned property sells for less than a short sale. We will never know why the original homeowner did not do a short sale before they were foreclosed on. But what we do know is that someone's pension fund or some investor wouldn't be out $40,000 to $50,000 because of the incompetence of the people working for these large banks who let things slide through the cracks.
Thanks for reading this, Merydith Endelman.
Merydith is a Real Estate agent at Realty Executives International.
Phone: 877-722-8553. merydith.endelman@gmail.com.
Merydith Endelman specializes in loan modification assistance and short sales in Morris County New Jersey. Morris County Loan Modification Help, Morris County Short Sales. Morris County Short Sale Realtor Short Sale Realtor. Morris County NJ Short Sales. Morris County Realtor.
Copyright 2010 SFI Marketing Institute, LLC. All Rights Reserved. This is not intended as legal, technical, or tax advice. Please speak with a licensed professional before making any decision. Information is deemed reliable but not guaranteed as of the date of writing. The views expressed here are Merydith Endelman's personal views and do not reflect the views of Realty Executives International. This information on Citizen's "Wiki Leak": Large Bank causes investor to lose an estimated 40k thru incompetence is provided as a courtesy to our viewers to help them make informed decisions.
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