Dan, it sounds like they are looking to you to pay the difference. Geniuses at work!

Dan you would think by now the lenders would smarten up,  BUT NO!!! they don't get it yet,  keep up the good work and good luck with your business,  E

Lenders are stupid..that's your fact.  Operate from there.  I would kick in the difference and get on to the next deal..If you do a lot of short sales, you are constantly throwing part of your money at a deal to close it.  Just part of being a short sale realtor.  Here in Palm Springs, CA., it's just part of my short sale MO..

And some in the public think we just play tennis, polo and wait for the call to trot in to the closing in shorts and an open shirt to pick up the check that just ta da... shows up without working up a sweat. We earn what we make and we don't get paid unless their is a sale so do whatever it takes to get to the long table. The one with all the chairs around it and plenty of pens in the middle for the sign here, here and (strain) here.

Very often these companies on second mortgages are more like collection agencies and I have seen far worse than what you describe which is mild by comparison. We close a lot of short sales and no one whould tell you what to do including me. I can only say that in order to keep a client out of foreclosure I have in these situations accepted the $200 reduction in commission and of course the short sale addendum that everyone signs says that we will accept 50% split of whatever that is. I have also had the buyer contribute the overage the 2nd is asking for since short sales are typically 20% below market value or more in our area.

I had a buyer on a deal that the 1st holder agreed to pay off the second and 3 days before closing they cut the amount down from $7000 to $3500...the second did not agree to the lower amount...the deal was dying.

Bank wanted the SELLER to pay the $3500.  Buyer said they would pay it.  Bank said NO, we are not going to allow the BUYER to pay it, we want the SELLER to pay it.

I sent an e-mail to the bank negotiator, her supervisor and the bank president telling them that if they did not get their act together, my next move was to call the newspapers and TV station and provide them with all the e-mails so that they can do an EXPOSE on how greedy and unreasonable this bank is.

(The buyer was in the service, so the story could have been real good...)

I swear we got a positive response within the hour.

Eve in Orlando

 

Hi Dan,

Seems like someone thinks 100% is better than 10%. Unfortunately they forgot that isn't true when talking losses...
Like you 'said', true genius at <cough> work.
Bruce

 

In all of these situations, and I have been the lender for buyers attempting to purchase in these cases, it amazes me that some institutions would rather remain in a state of untenable uncertainty instead of a fast resolution. I just never see the logic in getting to the inevitable destination later rather than sooner. I guess this frustrates us all. Best of luck!

If lenders only knew what we really think about them....Results don't lie, lack of results don't lie and the tree is always identified by the fruit...

Sad but true in this Short Sale Drama world that we live in today.  I agree with Paul Henderson, why is it that we (Realtors) always get the blame put on us.  Our goal is to get to the closing of a file so that our Sellers and Buyers are both happy, what part of that does the Bank World not understand!  We are all suppose to be help the Client!

It is sad that we still do not get the collaboration necessary when doing short sales. .when  they are helpful for them. .

Great picture by the way. . and it fits!

Have a great weekend

 

Stupid lenders is a great title and picture of the donkeys says it all. Good luck with your deal. Keep your cool and be patient. Easier said than done but you and your Buyers will be happy in the end.

Although I am blaming banks more and more for their bad business decisions, I think one should look at 1) how many months behind are these people, and how long have they lived for free 2) Do the sellers have some assets they could contribute?

Banks these days make very little sense. I think they know that if they screw it up again the American tax payers will simply bail them out and everything will be taken care of on their end.

Dan - There are too many of these sagas in the short sale process.

Dan, that's a perfect picture for your post.  Very frustrating, indeed.