Whose Sleeping in my Closed San Jose Short Sale

By
Real Estate Broker/Owner with KD Realty - 408.972.1822 CA BRE#01366594

Whose Sleeping in my Closed San Jose Short Sale

Is Wells Fargo Home Mortgage Making Post-Closing House Checks?

Just days after closing escrow on a San Jose Short Sale a representative from Wells Fargo came knocking on the door. The sellers, in the throws of moving, opened the door and was handed an envelope with bright red letters Confidential - Urgent Notice. The seller asked what it was regarding and the response was: "Occupancy."

three bearsLenders expect sellers to be out of the house after the close!

The seller proceeded to vent their frustration with Wells Fargo. I'm sure it all fell upon deaf ears. The person who delivered the notice was probably a third party field representative who was paid $25-$30 to deliver the envelope. In this case we will never know who the person was because the sellers did not ask. Too bad.

Short sale agents know that lenders are far behind their own processes. Wells continued to call the sellers each week throughout the short sale process despite the fact that their San Jose short sale agent had their third party authorization on file. Each time this happened the sellers would let me know. I would return the calls on behalf of the sellers and no one knew who called the seller or why. That's par for the course.

Wells Fargo continued to call the sellers throughout the short sale process attempting to get the sellers to contact them for a loan modification. These calls continued despite the fact that the sellers attempted a loan modification and were DENIED. That is why the sellers contacted San Jose short sale agent, Kathleen Daniels to assist with a short sale.

I asked the sellers "What did the urgent notice say?"

Sellers response was: "It said to call Wells Fargo about your mortgage and it gave an 800 number. I'm already closed so I threw it away." Too bad.

Does this house check represent a lag in the lenders process or is Wells Fargo now conducting post closing house checks? If it is a post-closing occupancy check this will be the first of its kind that this San Jose short sale agent knows of.

Whose Sleeping in my Closed San Jose Short Sale - by Kathleen Daniels, San Jose Short Sale Agent - San Jose Homes for Sale - 1-800-972-122

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Re-Blogged 1 time:

Re-Blogged By Re-Blogged At
  1. Joe Jackson 12/27/2012 09:41 PM
Topic:
Home Selling
Location:
California Santa Clara County San Jose
Groups:
Realtors®
Short Sale REALTORS®
"Whacked"!!!
Bananatude
Bartender, Make it a Double

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Rainmaker
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Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Kathleen, these big banks don't know what the left hand is doing at all!    It is sad!

Dec 26, 2012 10:31 PM #14
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Jeff Dowler, CRS
Solutions Real Estate - Carlsbad, CA
The Southern California Relocation Dude

Kathleen

Well that's the first time I've heard of this but somehow it does not surprise me to hear yet another example of profound ineptness.

Jeff

Dec 26, 2012 11:25 PM #15
Rainmaker
2,844,651
Kathleen Daniels
KD Realty - 408.972.1822 - San Jose, CA
San Jose Homes for Sale-Probate & Trust Specialist

Tom, It's a complete waste of time, energy and resources.

Lenn, Self-inflicted wounds indeed. When you have Big Daddy Government bailing you out of your business for making bad business decision designed to hurt the consumer ... there is no incentive to improve.  The banks have homeowners by the tail and that makes homeowners at their mercy ... which they have none. It's an endless circle ... like a dog chasing its tail.

Dec 27, 2012 12:14 AM #16
Rainmaker
2,844,651
Kathleen Daniels
KD Realty - 408.972.1822 - San Jose, CA
San Jose Homes for Sale-Probate & Trust Specialist

Brian, I agree.  I had a do not call in place with this client and they still kept calling!  That is harassment! 

Ritu,  I agree. It is not limited to Wells Fargo. I mention Wells because they are the bank that held the loan on this particular property. 

 

 

Dec 27, 2012 12:16 AM #17
Rainmaker
2,844,651
Kathleen Daniels
KD Realty - 408.972.1822 - San Jose, CA
San Jose Homes for Sale-Probate & Trust Specialist

Toni,  That is exactly why I think it was a matter of being behind on their own process.  They simply don't move that quickly on anything.  They would have to be really organized and on top of things ... which we know, they are not.

Joe, That happens here as well. Once people take possession, even without a lawful right to do so, the process of evicting them (to the letter of the laws) must take place.  I hope that works out for you and your clients.  No telling the condition of the property after squatters have been living there. 

Dec 27, 2012 12:20 AM #18
Rainmaker
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Kathleen Daniels
KD Realty - 408.972.1822 - San Jose, CA
San Jose Homes for Sale-Probate & Trust Specialist

Joan,  They don't know what the right hand is doing either.  It is sad and very frustrating to work with.

Jeff, It is a first for me as well.  I have mixed feelings ... it very well could be a post closing occupancy check yet I just don't think they are that on top of things.  They would have had to assign it to a field representative the day it closed in order to get someone to the front door that quickly.

Dec 27, 2012 12:23 AM #19
Rainer
439,217
Adam Tarr
MavRealty - Phoenix, AZ
PC -GRI, ABR, CDPE, RSPS, ePro - Designated Broker

Not surprising.  IF the banks could figure out what is going on inside their own houses they wouldn't have to make the process so difficult for all other parties involved.  What a waste of time, resources and money.  They probably lose as much on all this wasted time as they do on the loans

 

Dec 27, 2012 12:37 AM #20
Rainer
234,797
David Grbich
Realty One Group - www.FindCARealEstate.com - San Juan Capistrano, CA
Orange County Real Estate - 949-500-0484

Hi Kathleen - sure it is simply due to the fact that one department does not know what the other is doing but an occupancy check is not bad business on their part but guessing they would not be able to differentiate between the new and old owners. Regards Dave

Dec 27, 2012 01:38 AM #21
Rainmaker
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Kathleen Daniels
KD Realty - 408.972.1822 - San Jose, CA
San Jose Homes for Sale-Probate & Trust Specialist

Adam, Good point. I think we all lose when lenders make the short sale process so painful.  We have a long way to go before we navigate out of short sales.

Dec 27, 2012 02:05 AM #22
Rainmaker
2,844,651
Kathleen Daniels
KD Realty - 408.972.1822 - San Jose, CA
San Jose Homes for Sale-Probate & Trust Specialist

David,  True about distinguishing between new and old owners ... unless of course the old owners fess up right out of the gate when they open the door.  The short sellers are required to provide a forwarding address as well. So unless they use an address of a friend ... the presumption is that they have moved.

Dec 27, 2012 02:07 AM #23
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Chris Ann Cleland
Long and Foster REALTORS®, Gainesville, VA - Bristow, VA
Associate Broker, Bristow, VA

I just got one of those on a Wells Short Sale that was closed Friday.  Was on the door handle on settlement day.  I didn't recognize the number as a Wells Fargo number and since the notice was in Spanish as well, I thought it might be an attempt by someone dealing in loan mods or Short Sales to prospect.  I've never known Wells Fargo to send something out in two languages.  Just like your client, I disregarded it.

 

Dec 27, 2012 03:15 AM #24
Rainmaker
2,844,651
Kathleen Daniels
KD Realty - 408.972.1822 - San Jose, CA
San Jose Homes for Sale-Probate & Trust Specialist

Chris Ann, Now that I have read your comment I am leaning toward this being a new Wells Fargo process.  If my client had kept the notice I would have called the number and attempt to fish for more information.

Dec 27, 2012 03:43 AM #25
Rainer
284,418
Steven Cook
No Longer Processing Mortgages. - Tacoma, WA

Kathleen -- I am sure the client is glad they had you as their agent, even though you couldn't stop all the insanity of the big bank.  Blessings to you and yours in the coming year.

Dec 27, 2012 03:50 AM #26
Rainmaker
2,844,651
Kathleen Daniels
KD Realty - 408.972.1822 - San Jose, CA
San Jose Homes for Sale-Probate & Trust Specialist

Steven, Thank you so much. My clients certainly hoped I could stop the insanity ... but a I explained ... I have no control over what the lenders do. 

Dec 27, 2012 03:57 AM #27
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Jennifer Fivelsdal
JFIVE Home Realty LLC | 845-758-6842|162 Deer Run Rd Red Hook NY 12571 - Rhinebeck, NY
Mid Hudson Valley real estate connection

Kathleen if only everyone could be on the same page, by now you would thought processes were refined; too much to ask :)

Dec 27, 2012 01:22 PM #28
Rainer
208,959
Kymberly Caldwell-Muniz
(909) 973-0410 - Fontana, CA
TCR Group Keller Williams Realty Rancho Cucamonga

Hi Kathleen, now when I talk with the banks they seem to get the notes right. When I have to talk with all of the other departments (if my negotiator is not available) they seem to all have the same notes. Where is the breakdown? Is it because of all the pages that we have to fax over or upload to them. I mean where do they store all of this paperwork and how come we cannot just email it over to them. The banks waste a lot of time and money. I'm just saying, I just wish that they would get it TOGETHER.

Dec 28, 2012 06:14 AM #29
Rainmaker
2,844,651
Kathleen Daniels
KD Realty - 408.972.1822 - San Jose, CA
San Jose Homes for Sale-Probate & Trust Specialist

Jennifer, Sheer volume and lack of competency is what makes the process so challenging.  Happy New Year! 

Kymberly,  Where is the breakdown you ask?  Gheez, I think the breakdown starts at the beginning and continues to the end.  I am amazed at how I will get different responses from different people.  Like it or not, those of us doing short sales are stuck with the breakdown in communication and process.  Happy New Year! 

 

Dec 28, 2012 11:34 AM #30
Rainmaker
415,162
Tni LeBlanc, Realtor®, J.D.
Mint Properties, Lic. #01871795 - Santa Maria, CA
Tenacious Tni (805) 878-9879

They have time to do this?  I had a file with them this year that they took two months just to process. 

Talk about priorities.

Dec 31, 2012 06:16 AM #31
Rainmaker
549,426
The Villages Realty
The Villages Realty - San Jose, CA
"Our Performance Will Move You!"

Great post with some very valuable information.  Always like what you have to say.     

Dec 26, 2016 08:00 PM #32
Rainmaker
699,592
Eagle Ridge Realty
Eagle Ridge Realty - Gilroy, CA
"Our Performance Will Move You!"

Great post with some very valuable information.  Always like what you have to say.

Dec 27, 2016 05:16 PM #33
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Kathleen Daniels

San Jose Homes for Sale-Probate & Trust Specialist
An Independent San Jose Real Estate Brokerage
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