Seller: "A Bank Can't Foreclose if the House is Listed"

By
Real Estate Agent with Integrity Real Estate Services 118 SE AVE N, Idabel, OK 74745 141871

 

For some reason, this morning, my mind went to a listing I had a few years ago. 

 

I recall that as I was finishing up the last of the paperwork and photos for a particular listing in McCurtain County, the sellers asked a question that immediately threw up a "red flag"...

 

The sellers had hit a financial snag of major proportions.  The wife had lost her job.  The Husband had lost his job and was doing various local part time jobs.  They had already decided to move out of state, had some other options lined up in another state. 

 

 

The Conversation went something like:

 

 

Sellers: "The bank cannot foreclose on our property, if we have it listed, right?"

Me: "WRONG."

Sellers: "We were told that a bank can't foreclose on it if we listed it."

Me:  "YOU WERE TOLD WRONG."

Me:  "Are you behind on your mortgage?"

Sellers:  "Not now.  BUT We were."

Me:  "You are current on your mortgage?"

Sellers:  "Yes, we are now."

Me:  "Keep making your mortgage payments, if at all possible.  Let me know if you should stop. We are going to try to get the house sold as quickly as possible.  It's a great property and it's priced right."

Four months and numerous showings later, we get an offer that will work for them.  They quickly accept, no counter on any part.

  • Strong Buyers, Pre-approved - CHECK
  • Inspections , No major issues - CHECK
  • Appraiser Goes Out to the Property. New appraiser, we've not met before.. - 

 Everything falls into a black hole. Two weeks go by. No appraisal turned in.

 No one even admitted to ordering the appraisal. 

Buyers' loan processor is replaced. A different appraiser calls for access to the property.  Still don't know what happened to the other appraisal.

 

Surveyor does survey.  OOOOPS! 

 

Another one of those where the boundary line cuts across a structure. In the meantime, seller has moved out of the house.  Our office is dealing with the neighbor trying to work out something on the encroachment.  Thank Goodness she was willing.

 

She will sell part of her land at a reasonable price and wait until closing for her money.

 

While all of this has been going on, I've been trying to get the payoff from the bank. 

 

No luck. 

 

They cannot seem to find the form that I faxed to them...three times. 

 

Finally they tell me that on that particular account, I need to call the attorneys - it has been handed over to attorneys for foreclosure and that the attorney should be able to give me the information that I want BECAUSE THEY NOW CAN FIND THE FORM THAT  I SENT THEM WEEKS AGO AND THEY COULDN'T FIND BEFORE.  

 

WAIT. 

 

How did this happen?

 

Mr. Seller had stopped making his payments but didn't tell me that until I called him.

Why didn't he tell me?  

When I told him about the attorney, he seemed genuinely surprised.. seems the bank has been sending him friendly letters telling him that he was qualified for a refi at a lower rate.

This doesn't make sense.

Alright...I call the attorneys. Any request will have to be faxed to them and THEY DO NOT HAVE THE AUTHORIZATION FORM THAT THE BANK SAID THEY DID.  

I fax them a third party authorization form and a request for a payoff.

Two more weeks go by.  The survey has been taken care of .  Second appraisal was turned in. Everything is on go.

EXCEPT NO PAYOFF FROM THE ATTORNEY.

Finally get the payoff. Now we have a week to close, since it took so long to get the  payoff, should not be a problem... one week is plenty of time.

Buyers loan processor has been changed twice more while all of this is going on... loan docs will not be ready in time for the date "good till" on the payoff.

Now the closer has also been busy on these things.. called the attorney to let them know when we were going to try to close.  Settlement statement and title work done and sent to the loan processor for underwriting approval.

File is ready to go.  

Closer is ready to go.

Buyers are ready.

Sellers are ready.

Survey is right.

Appraisal is good.

Title work is finished.

Deeds are prepared and ready on the encroachment.

Attorney is to give payoff on a Thursday for a closing on Friday.

Nope. 

Nada. 

Zilch. 

Nothing.

Friday morning... I'm on the phone to the attorney...

NEED PAYOFF TODAY -  CLOSING TODAY. 

Seems someone there that was supposed to do it on Thursday did not do it, but someone else speaking on that person's behalf (???) said that person had gotten busy so they didn't have time. ???

They asked if I would call them back and they could then fax it to me.  I requested they fax it to the closer because I had to leave - closing about an hour's drive.

 

The sellers were driving in quite a distance from one state and the buyers were driving in from some distance from another state. 

 

Everyone coming together on faith that it was going to happen. 

 

The attorney's office faxed the payoff amount to the closer...

 

All docs were ready and WE HAD A CLOSING!   

I wouldn't have bet money on this one.

All parties celebrated!

The sellers needed to sell and by the time we got to closing they really needed to sell. 

They were happy.

The Buyer loved the property.  They got a good buy, a great interest rate and they were happy.

I got a hug from both sides.

 

I love happy endings! We could have made a suspense movie out of this one!

And I received a lovely gift - part of which is this beautiful bouquet of flowers that I still have photos of in a folder of pics that has flower pics from clients.

Integrity Real Estate Services does their best to make your purchase and/or sale go as smoothly as possible, even in dealing with these types of issues.  Call the Real Estate Office that takes care of business.

 

Thank you Pixabay.

This post is also posted on Idabel Homes.

close

This entry hasn't been re-blogged:

Re-Blogged By Re-Blogged At
Topic:
Real Estate Best Practices
Groups:
Bananatude
Cosmic Cow Pie...The Rome Way
Homes Land For Sale Idabel Oklahoma 74745
Tags:
avoid foreclosure oklahoma
sell a home idabel oklahoma
problem solver real estate agent

Spam prevention
Show All Comments
Rainmaker
258,917
Lesley Wilson-VanGoethem
Innovative Realty Solutions Group - Winter Springs, FL
Residential Real Estate Broker Associate

congrats on getting the job done!

Apr 12, 2018 09:17 AM #29
Rainmaker
1,102,614
Nick Vandekar, 610-203-4543
Long & Foster Real Estate Inc 610-225-7400 - Devon, PA
Tredyffrin Easttown Realtor, Philly Main Line

Great post and story with a happy ending thankfully, but so many places where that could have gone off the rails and was leaning and running on two wheels around the beds. Well done, you deserved those hugs.

Apr 12, 2018 11:08 AM #30
Rainmaker
3,332,846
Sally K. & David L. Hanson
EXP Realty 414-525-0563 - Brookfield, WI
WI Real Estate Agents - Luxury - Divorce

Lots of legends when it coms to foreclosure....snd Sellers too embarrassed to confess their financial status.

Apr 13, 2018 03:27 AM #32
Rainer
222,865
Bob Betel
Allstar Home Mortgage, Inc. - Sweetwater, TN
President, Allstar Home Mortgage, Inc

That is quite a story! Having to deal with bad lenders can be a nightmare. It should not be your responsibility to get payoffs and do all the things you did. Luckily you did, otherwise this deal would never have happened. Good job on your part.

Apr 13, 2018 05:59 AM #33
Rainmaker
1,123,473
Sam Shueh
(408) 425-1601 - San Jose, CA
mba, cdpe, reopro, pe

There were those who lost their home and could not figure out why their listed homes were foreclosed. Often it is the realtor who misled them.

There are also those who has been in and out auction, foreclosure and have not paid their mortgage for 10 years they are still in the home.

Apr 13, 2018 06:00 AM #34
Rainmaker
219,806
Eva B. Liland Century 21 Doug Anderson
Century 21 Doug Anderson - Lancaster, CA
Glad to be of Service 661-714-1643

I was at the edge of my seat reading this and thought there is no way this is going to have a happy ending, good grief! Luckily, with your persistence, it all went well, kudos to you!

Apr 13, 2018 06:08 AM #35
Rainer
116,985
Christine Kankowski North SD and Temecula
House Match Inc - Poway, CA
Excellent Sales and Property Management

im stressed just reading this. 

Apr 13, 2018 07:56 AM #36
Ambassador
3,007,535
Tammy Lankford,
Lane Realty Eatonton, GA Lake Sinclair, Milledgeville, 706-485-9668 - Eatonton, GA
Broker GA Lake Sinclair/Eatonton/Milledgeville

Foreclosures happen very differently in our state and an attorney isn't involved.  Sells on court house and bank is usually there to buy it unless someone bids more than the loan outstanding amount.

However I can't imagine the stress of a seller not being honest about making the payments.

Apr 13, 2018 09:03 AM #37
Rainer
7,020
Joseph Austin
KW Commercial - Upper Marlboro, MD
Investment Sales

Awesome job of perserverance and commitment! As all the previous comments suggest, both parties were very fortunate to have you in the midst of the transaction! Very commendable indeed!

Apr 13, 2018 10:08 AM #38
Ambassador
962,901
Mike Frazier
Carousel Realty of Dyer County - Dyersburg, TN
Northwest Tennessee Realtor

What a horror story. If only  your clients been honest you could have done a short sale but this one did manage to work out. So glad!

Apr 13, 2018 05:51 PM #40
Rainer
482,347
Bruce Kunz
C21 Solid Gold Realty, Brick, NJ, 732-920-2100 - Howell, NJ
REALTOR®, Brick & Howell NJ Homes for Sale

Quite an amazing story, An Idabel OK Broker ~ Judi K Barrett. I was on the edge of my seat reading through this and am SO Glad it came together for all involved in the end. It took a special tenacity to get this one done! Congratulations!
Bruce

Apr 13, 2018 06:49 PM #41
Rainmaker
2,919,006
Myrl Jeffcoat
GreatWest Realty - Sacramento, CA
Greater Sacramento Real Estate Agent

I am glad this ended well, Judi.  Some transactions are far more given to hard birth!

Apr 13, 2018 07:13 PM #42
Rainmaker
717,225
Debra Leisek
Bay Realty,Inc Homer Alaska - Homer, AK

I'm with Anthony Kirlew ny blood pressure went up just reading it..I also wonder like Bruce Hicks  if the bank was wells fargo....?

Apr 13, 2018 11:29 PM #43
Rainmaker
188,809
Marjorie, Doug & Kevin McKay
Engel & Voelkers Banff Canmore - Chestermere, AB
Calgary & Chestermere - 403-207-1776

If it were easy anyone could do it!

 

Apr 14, 2018 10:47 AM #44
Rainmaker
1,049,153
Jan Green
Value Added Service, 602-620-2699 - Scottsdale, AZ
HomeSmart Elite Group, REALTOR®, EcoBroker, GREEN

Wow!  That's a nail biter. I get your blood pressure was up a few points waiting on that attorney who dropped the ball. Glad it all came together.  Good for you!

Apr 14, 2018 12:38 PM #45
Rainmaker
2,390,332
Grant Schneider
Performance Development Strategies - Armonk, NY
Your Coach Helping You Create Successful Outcomes

Good afternoon Judi - wow there were so many hoops.  Glad it turned out well for everyone.

Apr 15, 2018 11:09 AM #46
Ambassador
4,205,540
George Souto
George Souto NMLS #65149 FHA, CHFA, VA Mortgages - Middletown, CT
Your Connecticut Mortgage Expert

Judi who ever told those Sellers that did not know what they were talking about.  Good thing you set them straight.

Apr 15, 2018 04:59 PM #47
Rainmaker
401,635
John Wiley
Fort Myers, FL
Lee County, FL, ECO Broker, GRI, SRES,GREEN,PSA

This post is for all those who say the being a real estate agent is easy and we don't do anything for "all" that money we get.

Congratulations on knowing your stuff and staying with the ugly process.

You are a stand out in the business.

Apr 27, 2018 02:55 PM #48
Rainer
53,778
Terry Kraemer
Exceed Realty - Houston, TX
Houston Realtor

When people question our jobs and why it is necessary to have a real estate agent, This is a good article to give them.  This would have never closed without your persistance.  Good Job!

Apr 28, 2018 08:05 AM #49
Rainmaker
526,535
Dave Halpern
Keller Williams Realty Louisville East (502) 664-7827 - Louisville, KY
Louisville Short Sale Expert

Another day in the glamorous world of a Realtor who deals with preforeclosures. Congrats on the closing!

May 30, 2018 09:28 AM #50
Show All Comments

What's the reason you're reporting this blog entry?

Are you sure you want to report this blog entry as spam?

Ambassador
2,306,898

1~Judi Barrett

BS Ed, Integrity Real Estate Services -IDABEL OK
Contact Judi Barrett about homes in Idabel Oklahoma!
*
*
*
*

Additional Information