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Our Longest Mile...

By
Real Estate Broker/Owner with Daytona Condo Realty, 386-405-4408

We took the listing for this Short Sale October 22, 2009. We closed July 6, 2012. It was a non-stop fight for 2 years, 8 months and 15 days. So, as of July 6, 2012 this 2 bedroom/2 baths condo unit in MG on the Halifax (former Marina Grande on the Halifax) is sold to the investor.

Our previous record was a gorgeous 3 bdr/3 baths condo in Cinnamon Beach, Palm Coast. (see The War & Peace of Short Sale and Terri, I Miss You, Too). I do not want any more records.

What started as a simple short sale with Chase as Servicer and Freddie Mac as investor, turned into a short sale nightmare for close to 3 years. We have submitted and resubmitted about a dozen times, had done 6 BPO and 2 appraisals by State certified appraisers…

The worst was that they never negotiated. You submit all the paperwork, they demand every conceivable document for their file, and then they would close the case.

Why? No explanations.

Our longest mileThen, finally there was a negotiator called Tia, and she called me to tell me that she was going to close the case, and she said it was because they did not agree to the price.

So, what price would have been approved? She said $90K. The Buyer was willing to go to $90K right away…

No, we can’t do it this way. They have to close and we have to resubmit, but if we resubmit with $90K it would be acceptable.

So, they closed the case, we resubmitted with $90K, the whole 9 yards with paperwork, they send again the agent to do BPO, the guy comes with crazy number, and it is closed again.

We contest the BPO, they get the appraisal, which supports our contract price, fine, and negotiator Stacy Parrish sends us a letter that the price we submitted was acceptable and all she needed were couple of updated documents for her file and we need to get it to her by the end of the day on October 11, 2011, and we complied, and the negotiator told our team that she got the paperwork and we were fine. Couple of days later the Seller forwarded me the letter from Chase signed by the same Stacy Parrish on October 10, 2012 stating that she was cancelling the request for short sale for… not sending them the required documents (see Case of Severe SSS (Short Sale Sabotage).

You would think that this was Stacy’s mistake and she would apologize, once we tell her, but don't be naïve. Stacy never took the call or returned the call or responded to the e-mail. Her supervisor did not return the call, either. The Customer Service said “sorry” but you will now have to resubmit again and, hopefully, get another negotiator assigned. We did, and then get another incompetent employee.

I never thought Chase had so many incompetent people. We reached to Chase Executive customer service people, and they would call on our behalf to the negotiators and then would call us every week to report on the progress. They apologized, but those bastards who acted like morons never did.

Our longest mile

I remember one negotiator insisting that BPO had more validity that the appraisal done by a certified state appraiser.

It felt like a contest, where the goal of negotiators was to come up with the way to stall the short sale. Every freaking pretext was fine as long as they could close the case as a result. Even if it was the most stupid one.

I got to brass at Freddie Mac, and the response was “deal with Chase”. They did not want to be bothered.

The funny thing was when Chase negotiators start blaming the Seller. One of those bright individuals blamed the Seller that they did not make any payments to Chase for 2 years. Yep, but they did not expect those bright individuals to be processing the short sale for over two years. Every time we would resubmit, we were assured that it is expedited, and we will have the answer very shortly. Until we were getting the same crap from yet another negotiator after negotiator.

What was the reason to waste the time of so many paid employees? What was the reason to never negotiate, and just keeping cancelling the case again and again? What was the reason to never tell us what the Investor wanted, instead saying that the offer was not approved?

I do not have the answer. I don’t think there is the answer. Acting stupid does not require logic, does not require sanity or reason.

We finally closed. It was a huge sigh of relief for us, the Seller, the Buyer, hanging in for nearly 3 years, and for the excellent negotiators from Johnson & Johnson Attorneys, Joanne and Dara. They managed not to lose sanity dealing with it on a daily basis. Kudos to them. I would have shot myself…

It feels like Freddie did not want to do a short sale, and we still finally beat them to it.

Why would they start if they did not want to finish?

P.S. Need to check Guinness Book of Records. Maybe they were trying to get there? Hmm….

Photos by Sheffield Tiger and  epicharmus via Flickr.com

John Juarez
The Medford Real Estate Team - Fremont, CA
ePRO, SRES, GRI, PMN

I just close a short sale with Chase in 1st and 2nd lien position. It went very smoothly.

The inconsistency of short sale lenders is remarkable.

Jul 08, 2012 01:01 PM
Jon Zolsky, Daytona Beach, FL
Daytona Condo Realty, 386-405-4408 - Daytona Beach, FL
Buy Daytona condos for heavenly good prices

John - and it could simply be because oif the investor. There was even a blog on AR aboutwhy the short sale with Freddie Mac would not happen.

We, too have closed a few short sales with Chase

Jul 08, 2012 01:06 PM
Gary Frimann, CRS, GRI, SRES
Eagle Ridge Realty / Signature Homes & Estates - Gilroy, CA
REALTOR and Broker

JOn, good for you for sticking with it.  This is the main reson I do not do short sales.  Have you thought about what you made per hour?  Don't--it'll just make you crazy.

Jul 08, 2012 01:51 PM
Dave Halpern
Dave Halpern Real Estate Agent, Inc., Louisville, KY (502) 664-7827 - Louisville, KY
Louisville Short Sale Expert

Jon, your excellent narrative of this Chase's behaviour reminded me of the dialogue in the movie "Flight Of The Phoenix";

Dorfman: Mr. Towns, you behave as if stupidity were a virtue. Why is that?


Moran: You told Towns he was behaving as if stupidity was a virtue. If he's making it into a virtue, YOU'RE MAKING IT INTO A BLOODY SCIENCE!
Jul 08, 2012 03:29 PM
Praful Thakkar
LAER Realty Partners - Burlington, MA
Metro Boston Homes For Sale

Jon, should I say 'congratulations'? A new record is never needed in this category - and I do understand what happens when S S is S!

Just a thought - what is the name of the bank? CHASE.....

What do you have to do to complete the short sale? CHASE....

(just trying to play with words and hopefully, it will lighten us up...lol)

Jul 08, 2012 04:19 PM
Pamela Seley
West Coast Realty Division - Murrieta, CA
Residential Real Estate Agent serving SW RivCo CA

Jon, congratulations on sticking it out. I've had a few where it was about principle. I'm sure you don't want another one like this one. I know I don't. Great job!

Jul 08, 2012 08:57 PM
Carol Faaland-Kronmaier
Weichert, Realtors; Hillsborough - Hillsborough, NJ
PhD, e-PRO, Manville, Hillsborough, Somerset NJ

Jon, As I opened your post to read I was wondering if it was a record for you.  Yes, try to not beat this record in the future!  At least it closed, finally.

Jul 08, 2012 09:00 PM
Scott Godzyk
Godzyk Real Estate Services - Manchester, NH
One of the Manchester NH's area Leading Agents

Jon you definately get "the pateince" award of the decade for sticking it out for 3 years.  My longest ever was 7 months a couple of years ago. In the last 5 years only 1 short sale was denied for me and in that brilliance they decined the short sale and sold it at auction for half of the short sale price to the same buyer that waited out their decision to get a much better deal.

Jul 08, 2012 10:00 PM
Neal Bloom
Brokered by eXp Realty LLC - Weston, FL
Realtor CRS-Weston FL Real Estate

My longest was with BOA back in the day when there was no rule for time limits. Sounds like they didn't follow the newer shorter timelines. Ours went 18 months and 5 buyers. We closed and they even ended up paying us a point more than originally granted and the home sold for 25K less..banks should hire Realtors or someone certified in analyzing market values instead of $5 buck an hour middleman just to pass on the information to the investor. Makes no sense....

Jul 08, 2012 10:39 PM
Jon Zolsky, Daytona Beach, FL
Daytona Condo Realty, 386-405-4408 - Daytona Beach, FL
Buy Daytona condos for heavenly good prices

Gary - you are right about money. It is pennies at best... Principles rarely make financial sense :)

Jul 08, 2012 10:53 PM
Jon Zolsky, Daytona Beach, FL
Daytona Condo Realty, 386-405-4408 - Daytona Beach, FL
Buy Daytona condos for heavenly good prices

Dave - I feel like bleeding :)

Jul 08, 2012 10:53 PM
Jon Zolsky, Daytona Beach, FL
Daytona Condo Realty, 386-405-4408 - Daytona Beach, FL
Buy Daytona condos for heavenly good prices

Praful - interesting, I played with the word myself...

Jul 08, 2012 10:54 PM
Jon Zolsky, Daytona Beach, FL
Daytona Condo Realty, 386-405-4408 - Daytona Beach, FL
Buy Daytona condos for heavenly good prices

Pamela - of course, I don't want another record. It is so exhausting... I have a file 3" thick

Jul 08, 2012 10:57 PM
Jon Zolsky, Daytona Beach, FL
Daytona Condo Realty, 386-405-4408 - Daytona Beach, FL
Buy Daytona condos for heavenly good prices

Carol - yes, it is finally over and no, I do not want another one like this

Jul 08, 2012 10:59 PM
Jon Zolsky, Daytona Beach, FL
Daytona Condo Realty, 386-405-4408 - Daytona Beach, FL
Buy Daytona condos for heavenly good prices

Scott - I guerss you are right that their dragging with short sale approval has little or nothing in terms of a better or fairer deal. Just longer

Jul 08, 2012 11:00 PM
Jon Zolsky, Daytona Beach, FL
Daytona Condo Realty, 386-405-4408 - Daytona Beach, FL
Buy Daytona condos for heavenly good prices

Neal - it is faster now. With the same Chase. Ours originated in 2009, plus our misfortuine is that the investor is Freddie Mac.

They are quasi governemnt, and dealing with them is like hitting the wall.

Jul 08, 2012 11:02 PM
Richie Alan Naggar
people first...then business Ran Right Realty - Riverside, CA
agent & author

Now here is a good IQ test question. Have Congress read your post and then ask: Would any of you want to bail out this institution and keep it going serving as a fine example of banking practices? Anyone voting YES gets voted out of Congress and anyone voting NO...goes on to the next test question. I just hope we don't run out of congress before we do questions

Jul 08, 2012 11:48 PM
Rob Spinosa
US Bank - Larkspur, CA
Mortgage Loan Originator, Marin County

As a long distance runner myself, I can certainly appreciate your post.  But after reading it, I'd much rather subject myself to the real thing --- regardless of distance.

Jul 09, 2012 12:00 AM
Jon Zolsky, Daytona Beach, FL
Daytona Condo Realty, 386-405-4408 - Daytona Beach, FL
Buy Daytona condos for heavenly good prices

Richie - I am afraid that even the reason the banks behave crazy is partly because of the government involvement, and all those regulations that are enacted to bring eternal good, and failing miserabley as everything the government does, which is out side of their core scope of authority

Jul 09, 2012 10:48 AM
Jon Zolsky, Daytona Beach, FL
Daytona Condo Realty, 386-405-4408 - Daytona Beach, FL
Buy Daytona condos for heavenly good prices

Rob - I can understand exhausting yourself in training. This would be a valid point to sweat again and again and again... so that you become good at that.

But setting barriers for the sake of setting bariers is a bit masochistic IMO :)

Jul 09, 2012 10:50 AM