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When a Bank Takes Down Both the Buyer and Seller!!!

By
Mortgage and Lending with Cherry Creek Mortgage Illinois Residential Mortgage License LMB #0005759 Cherry Creek Mortgage NMLS #: 3001 NMLS ID# 158606

So I get a call because of an inquiry from the FHA website.  A guy calls me and says that he wants some help with his situation.  It BLOWS ME AWAY!!!!

Cliff Note Setup:

Buyer gets transferred when his company gets bought out.  He has to move to Texas.  He has to sell home quickly, but either way he needs to move if he's going to stay employed.  He moves and the two buyers for his house fall through.  He goes into foreclosure. 

FLASH FORWARD: 

Borrower comes back to local place after opening for work returns to his hometown.  He has credit scores in LOW 500's.  Guess What....  Wells Fargo rep tells him....

"no problem, put a contract on the home as we can go down to 500 for credit scores."  Buyer gives seller earnest money .... GUESS WHAT????  Seller is going into foreclosure if they can't sell their home.  Buyer, in the interim, raises scores up to 579, but has only been 1 year out since a foreclosure.  Even if they had 800+ scores, it's virutally impossible to buyer after a foreclosure for a minimum of three years.  Buyer is really distraught, as is the seller. 

Wells Fargo rep says "Oh we can't do it....sorry....we need to be obove 600 for credit scores."  This guy calls me and I say guess what...even if you have 900 scores, it won't matter if you're less than 2 years out from the foreclosure.  I'm nice about it and say it professionally to the guy, but

  1. the buyer's going to lose his earnest money; 
  2. The seller will now be going into foreclosure;
  3. Both realtors will lose their commissions.... 

Because the rep at Wells Fargo didn't do their job up front. I'll work with this guy, but in truth, he has to hit the 3 year mark for the best options to open for him.

My .02 Cents

Wells Fargo shouldn't let reps on the street that don't know what they're doing.  They need to know the business.  Secondly, work with a licensed loan officer.  I guarantee you that if the prospect was working with someone who was licensed...

.....I wouldn't be writing this post today!

 

 

 

 

 

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Comments (10)

Laura Gray
RE/MAX Realty Group - Gaithersburg, MD

Larry

 

The big banks want to rule the world , but they refuse to train their staff and keep them up to date on the weekly daily changes that affect the mortgage industry. Don't they realize that this action created a trickle down affect to our playing field ? Just amazes me that after five (5) years they still don't get it or care

Mar 26, 2012 01:04 AM
Pamela Seley
West Coast Realty Division - Murrieta, CA
Residential Real Estate Agent serving SW RivCo CA

Larry, you are preaching to the choir on this one. Wells Fargo has hourly employees working in their mortgage dept who don't know a dang thing and could care less if the loan closes or not because they get paid by the hour telling hopeful borrowers they can get a mortgage loan. This is egregious beyond description.

Mar 26, 2012 02:18 AM
Steven Cook
No Longer Processing Mortgages. - Tacoma, WA

Larry -- it would be interesting if the Big Banks, who all seem to work this way, would have to make the buyer whole -- by paying the lost earnest money -- every time they messed up.  They would probably get things straightened out somewhat quickly then.

Mar 26, 2012 06:03 AM
Kim Boekholder Utah Real Estate/ PECO
Results Real Estate 801.580.5624 - Draper, UT
Broker Results Real Estate/Leasing Specialist PECO

Larry~

Wow, unreal at the disrespect and lack of common courtesy people have for each other.  The big banks have no heart and no repspect for us "normal" people.  By hiring staff who have not been trained and also people who don't care because they get paid either way, we continue to run into problems left and right.  I think the banks should have to repay the earnest money to the buyers for the false information.  The people who work for the banks should have to be trained.  The public does not know or realize that the big banks staff is not licensed or out to help them.

The public suffers because they big banks are able to hire anyone they want and not train them. 

Mar 26, 2012 06:33 AM
Lou Ludwig
Ludwig & Associates - Boca Raton, FL
Designations Earned CRB, CRS, CIPS, GRI, SRES, TRC

Larry

The story is not a surprise based on what's going on at the big banks. Sad state of affairs.

Good luck and success.

Lou Ludwig

Mar 26, 2012 11:09 AM
Dr. Paula McDonald
Beam & Branch Realty - Granbury, TX
Granbury, TX 936-203-0279

What a nightmare!  That is a terrible situation.  Oh it makes me want to run from these deals.

Mar 26, 2012 11:21 AM
Christine Hooks
Pino Agency - Pennsville, NJ
Celebrating 25 Years in Real Estate!

It would be great to think that this was an isolated incident.  

Mar 26, 2012 01:47 PM
Kristin Johnston - REALTOR®
RE/MAX Platinum - Waukesha, WI
Giving Back With Each Home Sold!

It would be great to think this is a one time event as Chris stated, but we all know that is not the case...booo

Mar 26, 2012 10:59 PM
Jason Sardi
Auto & Home & Life Insurance throughout North Carolina - Charlotte, NC
Your Agent for Life

Wow, Bettag.  I certainly don't miss that part of the biz.

Mar 27, 2012 06:11 AM
Frank Laisch
Orlando, FL
"The Insurance Guy"

Larry, horrible story. There are a few of the big lenders that will tell people what they what to hear.... they should be trained and be able to tell people what they need to hear. it all comes back to service  

Mar 29, 2012 09:13 PM