REO Homes and their pitfalls "The House Nazis"

By
Real Estate Agent with Florida Realty Investments

I was the selling agent for a buyer on an REO owned by the VA.  We were scheduled to close at 2:00 P.M.  I arrived and walked into the closer's office.  She immediately showed me an email indicating the home was pulled and we could not close.  We spent the remainder of the day emailing and calling the bank that administered to this property for the VA and the title company who handled the title for VA.  We had a simple question?  When can we close.  No one could answer.  How about an estimate?  We were told there is no way of giving us this information.  The buyers justifiably wanted to talk to someone from the VA.  We were not allowed!!!!  Yes, you have it right.  "No house for you!"  My buyer was unreceptive to this and continued pursuing this on Monday and Tuesday of the following week.  The only people he could get in contact with were representatives of the lender administering to the sale.  They spent 2 days sending him on wild goose chases.  I was trying to assist the buyer but honestly I knew what they were doing and I was so disappointed in the insensitivity.  Several times they told the buyer that it was up to the asset manager and the listing agent?  The buyer kept insisting I discuss it with them.  The listing agent was as far as I was going to get.  After 2 days of the buyer trying to find out anything; I receive a call from the listing agent.  He tells me, "you better tell your buyer to back off.  There are complaints going in my file over this. If he keeps this up I'm going to sue him."   Wow, I'm so sorry.  I'll call him right away.  what do you want me to do; should I  have him deported.  Please!!!!  Here's the reality.  This was wrong in oh so many ways.  The buyer has every right to question; it cost him money (no one offered to reimburse him), he's homeless. (no one offered him shelter), HE HAS EVERY RIGHT TO BE ANGRY.   Here is the solution - rather simple.  When an REO property is listed for sale with a Realtor, all the title issues should have been resolved.  If this happens to anyone because of a failure to do so; there should be heavy fines to the bank, title, VA etc.  The buyer should be fully compensated for losses and provided comparable shelter.        

 

Comments (2)

Michael Dagner
Brokers Guild Classic - Denver, CO
Your Denver Homes Realty Expert

Hank,

How did they arrive on the doorstep of closing with any legitimate issues that allow them to void the sale?  Hope the buyer has some legal remedies.  Take it to your congressman. 

Jul 30, 2011 05:46 PM
Anonymous
Hank lopez

Wow, i wish I knew how we arrived at closing with a property that had title issues.  I can tell you this; I believe there should be fines in place for banks that administer to the closing so poorly that this is then result.  I hope my buyer pursues them legally but yhe reality is they will probably get away with this.  It's kind of like the new HUDs over the last few years and the 48 hour HUD rule?  Banks ignore it because they can and we have to live with the issues that result.

Aug 01, 2011 01:49 AM
#2