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Get off your little BANKY BUTT

By
Real Estate Agent with Re/Max Realty Centre

Here in Montgomery County (Md) there are only 7 active buyers and I am representing one of them. And currently there are billions and billions of homes listed for sale. You would think my buyers would be revered, sought, courted etc by sellers. I mean they represent 14% of all buyers! Maybe that would be true if we were dealing with normal sellers. Alas, we're dealing with a BANK. Here's my sad tale of whoa, I mean woe.

On the 9th of July, we submitted a contract on an REO property which had been on the market  for 10 months. It had been listed previously as an overpriced short sale and had only been with their current agent for about a month. Comps showed it to be well-priced so we offered list with some closing help. We were in a dueling contract situation...Bank wanted us both to come back with our "best and final" offers. It took a little while to get a response but on July 25th, we received a bank addendum from the listing agent, advising us we had a verbal from the bank. My guys signed off and we returned addendum the next day.  

We scheduled a home inspection expecting to have a signed contract back in a few days. I don't like to draw those out but lacking a written response from the bank, decided to postpone. Buyers were anxious to proceed and the listing agent changed status of property in the MLS and assured us that the paperwork was forthcoming. Listing agent has a good reputation and so we went ahead with the inspection.

Heat pump is dead...(hey it's only  23) sooo since the listing indicated "as is", I drew up a nullandvoid addendum and called the LA to give him the bad news. As it turned out, there was some "give" in that "as is" and LA went about getting estimates for heat pump replacement at the request of the bank. Took about 2 weeks. Bank has had estimates for about two weeks and still we have nada from the bank signed contractwise.

The contract which the bank has verbally accepted calls for an August 29th settlement and the bank's title company is emailing me for the usual needed settlement details. They of course were unaware that the bank is still sitting on it's little banky butt and can't seem to get it together to send out paperwork. I must emphasize it ain't the LA. We talk a couple of times a week and he is as frustrated as we are.

I used to think bankers were smart. As a result of banker's role in the current mortgage morass, I thought bankers suffered from terrible judgement. I'm beginning to think they are just freakin' stupid.

Show All Comments Sort:
Ellie McIntire
Ellicott City Clarksville Howard County Maryland Real Estate - Ellicott City, MD
Luxury service in Central Maryland

I agree I have a hard time surpressing the groan when I see a house is a Short Sale. It's no fun having to deal with a data processor who hates their job in another state so far away you can't get to them!

Aug 25, 2008 01:08 PM
xxx x
Albany, NY

It boils down to Other Peoples Money. I don't think banks really care. Too many layers of management. If it was an individual, and it was their own money, I guarantee there would be no delays. 

Aug 25, 2008 01:11 PM
Chris Horton
Horton's Lawn Care L.L.C. - Burton, MI

Larry- This doesn't surprise me... I wonder if there was ever even a 2nd buyer to be honest with you as I have heard of this scenario many many times.... One time the buyers offered a lower offer (10k lower) and ended up getting it anways lol.... but for my main point of commenting here....

I too think the banks are getting stupid lol My parents are investors... About 1 1/2 - 2 years ago they submitted an offer on a Bank property, and got the oooh we have 2 other bids give us your best offer, they bid $1500 higher bank came back said one of the others bid the same thing give us your best offer, so they dropped it 20k knowing the bank was probably B.S.ing and if not no big deal there were other houses, bank turned it down but home stayed on the market. 2 months later still on the market so they offered the 20 k less offer, same thing oooh we have another buyer thats a little higher give us your best offer, knocked another 5 k off turned down again..... kept doing this for about 6 months finally they got sick of the games (although they said it was kind of fun because....) did one last offer for $35,000 (35k less than original 1st offer, 40k less than original asking price lol) again told they had another offer so they offered 28k and again turned down.... ONE YEAR LATER THE DUMB BANK FINALLY SOLD IT FOR $22,500... Yeah I'd say the banks are getting stupid and think everyone else is too lol

Aug 25, 2008 01:16 PM
Larry Van Druff
Re/Max Realty Centre - Olney, MD

Chris..couple days before we wrote, LA said there was a lowball offer in that he doubted the bank would take. As for your parental investor story...I just love a happy ending!

Aug 25, 2008 01:30 PM
Ross Quintana
Real E Smarter - Spokane, WA
Real E Smarter Real Estate Coach - 509-362-1966

Yes many agents don't like doing short sales because of the issues. It's bad when it's with a local Realtor, but worse with a banker in a desk in Ohio

Aug 25, 2008 01:35 PM
Larry Van Druff
Re/Max Realty Centre - Olney, MD

Ellie, this was an REO..I try to avoid short sales...I fear the great unknown!

Aug 25, 2008 01:37 PM
LS Rogers Realty
LS Rogers Realty - Richardson, TX

I understand. It's become a great surprise when banks respond within 2-weeks. At least it's not the LA.

Aug 25, 2008 01:37 PM
Larry Van Druff
Re/Max Realty Centre - Olney, MD

That's the essence Steve...layers of bureaus, all on the clock, dealing with other people's money.  Sad isn't it?

Aug 25, 2008 01:40 PM
Chris Horton
Horton's Lawn Care L.L.C. - Burton, MI

Larry- It would of been a happy ending had we gotten the house in the 1st place, however we stopped their little games and bout 2 others without games.... Yeah your right still a happy ending lol :-D

Aug 25, 2008 01:40 PM
David Thomas
HomeSmart Realty, Elite Group Scottsdale, Arizona - Gilbert, AZ
Phoenix,Chandler,Mesa,Gilbert,AZ

This is so typical - it has everybody pulling their hair out - except the banks!  Who usually have the most to lose!

Aug 25, 2008 01:45 PM
Julie Hite
Guaranteed Home Mortgage Company, Inc. - West Bloomfield, MI

I think most banks/lenders are short staffed and have limited talent. Many people in the default or servicing area never intended on dealing with realtors and consumers. They spend the day looking out at the world instead of working out there with the rest of us.

New departments will be formed and new processes will be created, there will be training based on experience in the near future I am sure. It has already gotten better lately compared to a year ago.

Aug 25, 2008 01:52 PM
Cindy Jones
Integrity Real Estate Group - Woodbridge, VA
Pentagon, Fort Belvoir & Quantico Real Estate News

I have two REO deals in process right now and I love the explanations from the agents.  Once you sign then the bank might take two weeks to sign it back but it will be considered an accepted offer.  Meanwhile you want us to go ahead and get the appraisal done and remove our financing contingency?  Ha Ha two can play this game too.  If we don't have a fully ratified contract then we are going to lift a finger either.  When you sign then we will make our calls and not a moment sooner.   Take that banky banky :-)

Aug 25, 2008 02:07 PM
Laura Watts
Positive Properties, LLC - Laurinburg, NC

Larry- I know how you feel. I deal with a lot of different REO companies and you just never really know what to expect and when you think you have it down, they change the program on you. Hope every thing works out for you. 

Oct 17, 2008 04:16 PM