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FORECLOSING DURING NEGOTIATIONS SHOCKING

By
Real Estate Broker/Owner with people first...then business Ran Right Realty 636943 licensed to thrill

I have had this happen twice to me now and it is something that stings and should not be allowed. In my first encounter, I was aggressively seeking a loan modification (remember those?) and in constant (painful) nearly daily communications with the bank. I waded through them losing documents, being kept on hold and being disconnected often

ALMOST THERE

Finally, we are at the tail end and have followed and obeyed all instructions to the letter and responded in record time too. The subject was so important that we felt it deserves top notch time and attention. That is what responsible, decent and honest people do when at work or play. They attend to their affairs diligently

FAX THIS RIGHT AWAY

The bank tells me it's getting approved and they need faxed immediately one piece of paper. I comply, tell my clients its nearly over and go into a great Friday eve and weekend. Monday morning there is a knock at the door and a guy hands my client a 3 day notice to get out and says the house was sold at auction early that morning.

WHAT CAN YOU DO?

Needless to say we were livid and there is nothing you can do (at that time). The second time this happened, I had the house listed and had several offers all of which can perform within days of acceptance. The bank signaled all was fine and chose to order two more BPO's explaining that the investor wanted to make sure he could not get anymore for the property

AT DISNEYLAND I GET THIS CALL

While waiting for their final approval and of course all this time I am hand holding all the would be buyers hands telling them I will know something any day now, I notice that the property was visited and someone was visibly there more than once. I paid it no attention. One day, I am at Disneyland and I answer my phone...

WHO IS RUNNING THIS PLACE?

Its the REO agent for the property asking me if I am the listing agent. I said yes and he said you have no rights to this property.  Turns out that they pulled the foreclosure trigger 2 weeks ago and the negotiator I am talking with did not know and neither did I. I find out neither did the bank supervisor either.. TWO WEEKS?

MONEY LENDERS YES...BUSINESS PEOPLE NO

I have said it many times...BANKS ARE NOT BUSINESSES. At best, they are money lenders. Its not my opinion stating this, but its the results or lack of results that make it very clear their ineptness and irresponsibility bordering on negligence. Currently, B of A and four other large banks were sued and settled for billions for practicing this conduct.

THIS CONDUCT WAS PRACTICED DURING THE VIET NAM WAR

Prisoners of war were often tortured mentally and emotionally with false hope tactics. They were sometimes told they would be released and to gather all their things only to find out it was just a cruel hoax over and over again. No early release and go back to your cells. Ha Ha Ha said their captors...Why would banks imitate that conduct?

Comments(95)

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Gary Frimann, CRS, GRI, SRES
Eagle Ridge Realty / Signature Homes & Estates - Gilroy, CA
REALTOR and Broker, Notary

The waters are so muddy now with no clarity that I avoid short sales.  Actually, I always have.  One in my neighborhood that has been pending for 420 days.  Who need this garbage.

Sep 08, 2012 03:20 PM

I blame the real estate agents. Under no circumstance should you lose a short sale or loan modification because of an unknown foreclosure date.

Everytime you do your followup call, even for those listings on Equator, you need to ask if there is a sale date. Ask it even if you were told no on your previous call. You should be in contact with the short sale department 2-3 times a week.

Once you learn about a sale date, then you need to get it extended or removed. If the bank doesn't do it by the morning of the sale date (or one day sooner, depending on sale time and local practices), then you file for bankruptcy and withdrawl. That will buy you more time.

Comments
Bob Miller
Keller Williams Cornerstone Realty - Ocala, FL
The Ocala Dream Team

Hi Richie, we have had them foreclose at the last minute also.  But with a 2+ year backlog in the courts in Marion County you can understand the banks not wanting to start over again.

Sep 08, 2012 11:40 PM

Satar...I have to tell you that there is always more an agent can do. It is similar to raising children and looking at your high school years. There is always something more to do. At some point, people look for trust. There is something in us that wants to connect with others and both walk away better for the experience. The "trust" principal will be with us as we journey, and with the rewards also comes betrayal and pain with some sorrow thrown in. To take the word of a person is normal. for them to break that word is unacceptable behavior....thank you for your quality Input...I enjoy you Satar

 

Hello Bob...When dealing with entities, why is it we forget that they are not human? Is it because they have a human representative? When an entity does something wrong, no one is accountable. How convenient for them and just a really bad day for every one else...this is not the real world. Humans came first...People were not made for Real Estate...Real Estate was made for people....thank you Bob for sharing

Comments
Richard Alan Naggar
people first...then business Ran Right Realty - Riverside, CA
agent & author

Gary...how true and your statement of who needs all this is the whole point. It is a very unpleasant situation for all. Therefore, every-ones best foot forward should come out making it tolerable until we get through it....Oh for the day when short sales are gone...good riddance...best to you Gary 

Sep 09, 2012 12:45 AM
Thomas McCombs
Century 21 HomeStar - Akron, OH

This will not change until someone actually goes to jail.  Under the current system banks usually get reimbursed for their losses, and there is no line of responsibility for negligence or fraud.

Sep 09, 2012 01:02 AM
Richard Alan Naggar
people first...then business Ran Right Realty - Riverside, CA
agent & author

Thomas...whoa...bulls eye! Sometimes jails and hospitals are used for that very purpose..Yes? What we are witnessing here Thomas is that certain entities can be above the law. It is like a diplomatic immunity. Eventually, this can lead to a civil war because people cannot live long with injustice....thank you Thomas for visiting with me

Sep 09, 2012 01:17 AM
Evelyn Kennedy
Alain Pinel Realtors - Alameda, CA
Alameda, Real Estate, Alameda, CA

Richie:

That is so wrong.  One division of the bank doesn't know what the other is doing.  That is why I have decided not to participate in short sales.  Too much uncertainty.

Sep 09, 2012 03:51 AM
Richard Alan Naggar
people first...then business Ran Right Realty - Riverside, CA
agent & author

Evelyn....To lull someone into a false sense of security and then drop the hammer is against everything human beings stand for. Out history speaks out against wolfs in sheep's clothing...The right to foreclose is not disputed. Telling people you wont and then doing it is game playing of the highest order...this is offensive against God and man..thank you E

Sep 09, 2012 04:01 AM
Paddy Deighan MBA JD PhD
http://www.medicalandspaconsulting.com - Vail, CO
Paddy Deighan J.D. Ph.D

hard to imagine but easy to believe today....this makes no sense but it is bank logic.  I worked on a BofA proiperty that they did not know that they owned and another Wells property that wells listed wiht a REO sagent but I had it tied up in Court

Sep 09, 2012 10:06 AM
Brad Baylor
ERA Coup Agency - Milton, PA

I have seen this happen too.  Makes me sick!

Sep 09, 2012 11:57 PM
Richard Alan Naggar
people first...then business Ran Right Realty - Riverside, CA
agent & author

ACTIVERAIN BOYS

Paddy me boy...Yes to your comment. I am not interested as to why they are having problems either. Acting responsibly should be the default behavior at all times...thank you Paddy

Brad...You sepak for hundreds of thousands when you make that statment..."makes me sick" is a deserved statment too. People dont throw that one out unless it fits...Thank you Brad

Sep 10, 2012 12:01 AM
Gene Riemenschneider
Home Point Real Estate - Brentwood, CA
Turning Houses into Homes

I submitted one to Wells Fargo and was told to submit it a certain way as a HAFA Short Sale.  Then we get everything in as they told us to.  Then they tell us the Investor does not do HAFA and we need to resubmit another way.  Seems to me they should have known this up front.

Sep 10, 2012 06:52 AM
Richard Alan Naggar
people first...then business Ran Right Realty - Riverside, CA
agent & author

Herr Riemenschneider...Now your comment demonstrates the point. This sounds either like they are on a learning curve or they just don't know what to do. Of course negligence and indifference just stands out too...good share Gene...thank you 

Sep 10, 2012 07:08 AM
Jan Green - Scottsdale, AZ
Value Added Service, 602-620-2699 - Scottsdale, AZ
HomeSmart Elite Group, REALTOR®, EcoBroker, GREEN

I've been told that B of A short sales will not be extended, as they've changed their policy.  Short sales are selling for less than foreclosures here in AZ.  So, B of A is setting higher reserve prices on their REO auctions so they can list and sell them for more $.  B of A being about 25% of the REO's has set their course to make more on their losses.  I guess I can't blame them, but not extending foreclosure dates when homeowners are so close to ending the nightmare is just not fair!  Is your short sale a B of A loan?

Sep 10, 2012 02:41 PM
Richard Alan Naggar
people first...then business Ran Right Realty - Riverside, CA
agent & author

Hello Jan...yes to your question of B of A being involved...Toward the end of this short sale fiasco, watch them wake up and run like a business until all inventory is dumped to acceptable levels...Good for them and bad for everyone else trying to re-negotiate

Sep 10, 2012 11:29 PM
Nan Jester
Exit Real Estate Gallery Jacksonville Beach, FL - Jacksonville Beach, FL
Realtor, Exit Real Estate Gallery

My first year in Real Estate was 1985. The Mortgage business was horrible for the customers then.  With all of my heart, I think it is worse now even with all of the electronic advances. ACK!!!

Sep 11, 2012 01:18 AM
Richard Alan Naggar
people first...then business Ran Right Realty - Riverside, CA
agent & author

Hello Nan...very true...technology is a double edged sword in many ways...best Nan...

Sep 11, 2012 01:22 AM
Elva Branson-Lee
Best Atlanta - Atlanta, GA
Marketing Specialist, Atlanta Short Sale Pr

Sometimes lender or investor guidelines will permit a limited number of extensions on a foreclosure sale. The listing agent may not know that the borrower has already used up a few extensions in the loan mod process, I have learned to ask about this going in.

Also, I've learned to constantly check the county record for new foreclosure notices, because you all are right -- the foreclosure department often seems to have it's own agenda, separate from and even at odds with the short sale department.

Sep 23, 2012 11:06 AM
Richard Alan Naggar
people first...then business Ran Right Realty - Riverside, CA
agent & author

Elva...very good first point made in your comment on the extensions. As to the other departments, yes again Elva....Just the other day, I got notification of monies due for them pulling the trigger and expect some monetary relief..thank you for your worthy contribution on the subject matter

Sep 23, 2012 11:08 PM