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

By Todd Clark - Retired

Real Estate Agent with eXp Realty LLC 200311024

March 06, 2011 01:38 PM

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

Linda Hinson

S & L Properties - Calabash, NC

Good for her!

Mar 06, 2011 02:12 PM

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

John McCarthy

North Hampton, NH

Realtor - Seacoast NH

Todd,

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

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

Michael Jacobs

Pasadena, CA

Pasadena And Southern California 818.516.4393

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

Mar 06, 2011 04:27 PM

Paul S. Henderson, REALTOR®, CRS

Fathom Realty Washington LLC - Tacoma, WA

South Puget Sound Washington Agent/Broker!

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

Fernando Herboso - Associate Broker MD, & VA

Maxus Realty Group of Samson Properties - Clarksburg, 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

Ginny Gorman

RI Real Estate Services ~ 401-529-7849~ RI Waterfront Real Estate - North Kingstown, RI

Homes for Sale in Southern RI and beyond

Todd, what a strong bellied client you have...glad it worked out well for you and your client...it is amazing what still goes on at some of these bank closings..

Mar 06, 2011 10:50 PM

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

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.

Thanks

Phil

Mar 07, 2011 12:03 AM

Michelle Francis

Tim Francis Realty LLC - Atlanta, GA

Realtor, Buckhead Atlanta Homes for Sale & Lease

Todd,

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

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

Larry Atkins

State Wide Realty Co. - Farmville, VA

Veteran Owned & Operated

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

Craig Rutman

Helping people in transition - Cary, NC

Raleigh, Cary, Apex area Realtor

A contract is a contract and the terms are binding...no matter who the parties to the transaction are.

Mar 07, 2011 07:44 AM

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

Rodney Mason, VP of Mtg Lending

Guaranteed Rate NMLS# 2611 - Atlanta, GA

AL,AR,AZ,CA,CO,FL,GA,IN,MI,MS,NC,NV,SC,TN,TX,VA,WA

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

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

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

Todd Clark - Retired

eXp Realty LLC - Tigard, OR

Principle Broker Oregon

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.