Yes, even you big banks can’t change the contract at the closing table

Real Estate Broker/Owner with Respect Realty LLC 200311024

Well, Friday was a good day, my client finally got the keys to her new house, but it wasn’t easy. The delay in close was because the bank on this foreclosure was refusing to sign the settlement statement. They said they were refusing to sign and to pay the buyers prepaids despite us putting that in the contract and them agreeing to it. They thought my client would fold and bring in the extra $1,800 netting them more, they were wrong!

Banks playing ball

How did we get the bank to finally play ball? The buyer advised me to send a letter to the bank… in the state of Oregon you can sue for 3 times the amount of actual damages. What was she listing as actual damages? $495.00 (Inspection) $500 (Appraisal) and $10,000 (1/2 percent interest for 30 years – Interest rates went up since her lock)

The total bill for the bank, if they wanted to not honor the contract, was a total of $32,985. For some reason, yesterday morning the title officer got a signed deed and settlement statement from the bank. I guess they decided they better honor the contract they signed. I love a client that is not willing to fold to a big bank. Most people I know would have just paid the money instead of trying to fight it, but not her and I’m glad she didn’t.  


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Dee Mayers
Covina, CA
San Gabriel Valley, CA

Isn't it good to have a written record of obligations and expectations?!

Mar 06, 2011 02:11 PM #6
Linda Hinson
S & L Properties - Calabash, NC

Good for her!

Mar 06, 2011 02:12 PM #7
Mike Jaquish
Realty Arts - Cary, NC
919-880-2769 Cary, NC, Real Estate

In a charitable moment or two, I may say that the banks do not play dirty pool.

They are just totally inept at what they are trying to do and that causes everyone pain.

Mar 06, 2011 02:49 PM #8
John McCarthy
Bean Group Portsmouth NH - North Hampton, NH
Realtor - Seacoast NH


Good for your client and good for you too! Sometimes you have to take your strongest stand ... and don't blink.

Mar 06, 2011 03:35 PM #9
Glenn Roberts
Retired - Seattle, WA

Great story and glad to hear it. Everyone should be standing up to the banks.

Mar 06, 2011 04:26 PM #10
Michael Jacobs
Coldwell Banker Residential Brokerage - Pasadena, CA
Los Angeles Pasadena Area Real Estate 818.516.4393

Hi Todd -- I certainly like her attitude and thought process.  Great job!

Mar 06, 2011 04:27 PM #11
Paul S. Henderson, REALTOR®,CRS,
RE/MAX Professionals. - Tacoma, WA
Tacoma Washington Agent/Broker & Market Authority!

Todd have you noticed how easy big banks and lending institutions can say no when all your client is to them is a number rather than a face and a family and a story…

Mar 06, 2011 05:46 PM #12
Fernando Herboso - Broker for Maxus Realty Group
Maxus Realty Group - Broker 301-246-0001 - Gaithersburg, MD
301-246-0001 Serving Maryland, DC and Northern VA

Another tactic they use . . .they think that rules does not apply to them. .good for your client 

Mar 06, 2011 10:22 PM #13
Ginny Gorman
RI Real Estate Services ~ 401-529-7849~ RI Waterfront Real Estate - North Kingstown, RI
Homes for Sale in North Kingstown RI and beyond
Todd, what a strong bellied client you have...glad it worked out well for you and your is amazing what still goes on at some of these bank closings..
Mar 06, 2011 10:50 PM #14
Gabe Sanders
Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

Well done Todd.  It's really great to hear some one winning against the arrogance of these banks and their current mode of operations.

Mar 06, 2011 11:41 PM #15
Phil Leng
Retired - Kirkland, WA
Phil Leng - Retired

Hi Todd,

That was an interesting story.

I have had several similar in my work listing REOs, but the bank always won.



Mar 07, 2011 12:03 AM #16
Michelle Francis
Tim Francis Realty LLC - Atlanta, GA
Realtor, Buckhead Atlanta Homes for Sale & Lease


I love this story.  Stick to your guns when you are right!  

I remember negotiating on the purchase of my first home 21 years ago.  We were $1,500 apart at $129,000 and $130,500.  I told my agent I would split the difference and she really wanted me to go to $130,000.  I explained that wasn't going to work for me, as that $250 was huge, as I would be totally broke and needed to buy a refrigerator which the house didn't come with.  Also, my second arguement was the $250 meant less to them, it was a government corporate relocation than to me.  

They agreed and I got the house. 

All the best, Michelle

Mar 07, 2011 03:14 AM #17
Jerry Newman
Brown Realty, 210-789-4216, - San Antonio, TX
Texas REALTOR, San Antonio Military Relocation

Great story Todd. I am glad you and your client won against another Bank Giant. It paid to be right, and stick with it.

Mar 07, 2011 05:28 AM #18
Larry Atkins
State Wide Realty Co. - Farmville, VA

Todd, score one for the little guy! Always great to hear a story like this one, thanks for sharing.

Mar 07, 2011 05:47 AM #19
Craig Rutman
Helping people in transition - Cary, NC
Raleigh, Cary, Apex area Realtor

A contract is a contract and the terms are matter who the parties to the transaction are.

Mar 07, 2011 07:44 AM #20
Joe Kenny
Realty Executive Midwest - Darien, IL
Better Than Your Average Joe

Note to self- Self, call attorney and research the suit limits here in Illinois.  Todd, please thank your client for the good advice

Mar 07, 2011 08:29 AM #21
Rodney Mason
On Q Financial - Atlanta, GA
FHA 203(k) & HomeStyle Renovation-AL,FL,GA,TN

You do have to wonder why there are so many last minute issues.  Most REO contracts always spell out whether the seller contribution would include pre-paids or just closing costs.  I cant ever recall any issue with pre-paids though.

Mar 07, 2011 12:40 PM #22
Terry & Bonnie Westbrook
Westbrook Realty Broker-Owner - Grand Rapids, MI
Westbrook Realty - Grand Rapids Forest Hills MI Re

A few more buyers stand up to them and they will quit these tactics.

Mar 07, 2011 01:15 PM #23
Christine Donovan
Donovan Blatt Realty - Costa Mesa, CA
Broker/Attorney 714-319-9751 DRE01267479 - Costa M

Todd - What a great story of your buyer sticking to their guns and getting what there were entitled to get.

Mar 07, 2011 04:41 PM #24
Respect Realty LLC
Respect Realty LLC - Milwaukie, OR
Brokers - Oregon / SW Washington Real Estate

I loved this client and I'm glad she stuck to her guns and wouldn't let the big bank walk all over her like they probably have done to so many others before.

Sep 01, 2011 08:56 AM #25
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