One more unbelievable story to add to the loooong list of actual events happening on "Main Street" right now. Will Congress ever take notice?
- Seller and buyer in contract at a very decent market price. (REO Price is approximately 20% less)
- 1st lien holder approves subject to 2nd receiving only $2000
- 2nd lien holder needs $4500
- 1st says "if 2nd gives written approval for the $4500 they may be able to ok it"
- 2nd says "will only do that if 1st puts it in writing that they will accept it if we approve it"
ARE YOU KIDDING ME?
The story goes on....
- Seller is willing to come in w/ the difference to pay off the $2500 difference on the 2nd.
- 1st says no, they want any additional $ (no surprise there, 1st lien holders are wanting all they can get)
- 2nd hears "no", closes the file and refuses to reopen it
- Have to resubmit the entire package to the 2nd to get another negotiator assigned
And drumroll please...........
When 1st is asked to once again reconsider the $2500 difference, and told what price they are looking at on foreclosure, their response?
"We don't care because we get reimbursed for that now by the Government"
So nice to know the bailout is helping real people.
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Colleen Fischesser is the Designated Broker and Owner of RE/MAX Select Real Estate. She has been successfully helping clients buy and sell real estate in the greater Seattle Washington area since 1990 and specializes in South East King County including the communities of Covington, Renton, Auburn, Kent, Ravensdale, Black Diamond & Maple Valley. Voted by clients and industry professionals as one of Seattle Magazine's 5 Star, Best in Client Satisfaction for sevenyears running, she and her team rank in the top 50 of RE/MAX teams in the entire Northwest region. Colleen is committed to remaining on the cutting edge of real estate marketing and technology while providing value-added, personalized service.
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Hello Colleen. Truly stupidity out there with these buyer and seller thoughts and NOT getting a deal done. I hope you work through it. It sounds aggravating!!
Colleen. I feel your pain.
I have one now written Jan 25. Everything done. The listing agent sent in a final HUD-1 with a $10,000 (low) mistake. The bank approved.
Now she can't get them to recognize her error and approve the contract as agreed prior to the final HUD-1.
We're in limbo.
Thanks Gary!
Lenn, why should they? They now have nothing to lose by letting it go to foreclosure. Their loss is covered. It's absolutely unbelievable how much of a mess the Government has created by throwing wads of money at a situation they didn't fully understand.
I recently read an article that banks are sitting on thousands of foreclosures, not trying to sell them. It appears that neither the government nor the banks are interested in helping homeowners. The attitude of most banks hasn't changed, they smell the potential to recoup their losses and are not interested in the plight of homeowners.
Of course the first cares. Even if they get the money from the bailout, they still will have the non-performing asset on their books in the interim and lose borrowing power at three to five times its value. Multiply that by the thousands of foreclosed homes, and the lender still has no money. I would escalate to the CEOs office. Good luck!
What a nightmare. This happened to us once as well and I thought I was pulling my hair out. Ours never did get resolved because of the 2nd. ~Rita
What a nightmare these stories. I wish you luck.
Just gives credence to many things wrong in our system today.
Colleen,
That's got to be frustrating. You would think with them getting bailout funds they would move much more quickly to recoup their losses.
The inmates are running the asylum. God help us all.
Colleen - Do you think we can get someone on the "White House " staff to join AR and hear our stories first hand !! Maybe then Main Street will have a chance against Wall Street
This entire mess is crazy. I've been working on a short sale since God was a small boy ad we're no closer to closing than we were when we started. I surmised long ago they didn't give a hoot.
What a mess! Lol at Jesse though. Since God was a small boy! I never heard that one before!
The sad thing is that stupid cannot be fixed.
Colleen: Sorry to hear about the horror story. I would bet that most of these get messed up in some forn or another. I suppose if they left the real estate game to the people who understand it, we'd all be better off. So what's the solution? The free market? Perhaps. It may have gotten ugly but I've never trusted government to really help! Thanks for the post!
Amen about the government helping the situation -- look at the IRS. Now they're "helping" bankers and the auto industry! It would be lovely to have someone with the power to make a change actually LISTEN to Realtors. Hope your deal works out, Colleen.
I know how maddening this can be, Colleen -- been there. Why don't you bump up the price by $2,500 and have the buyer wrap it into the new loan? That's been my solution when this crops up.
Unbelievable! It's a tough negotiation (more like a smack-down) always between the 1st and 2nd lien holders. Have also had this happen before and the home went into foreclosure - oh yeah, the government took it over!
Negotiations like that is just ridiculous. The bankers get paid no matter what and that is part of the problem. They do not have any incentive to SOLVE the problems.
I so hear this. A guy in my office had a contract on a short sale...took the bank 4 months to respond! And when they did, they rejected the offer. I don't know all the details, but I would never let a Buyer sit that long an wait on a property unless it was a one of a kind, never to be found ever again.
Now, Fannie Mae has issued guidelines that REALTORS cannot be shorted on commission on a short sale as we have to work really hard to get the sale to happen, and if a loan is guaranteed by them, then the lender cannot force the commission below 6%. Yet, just call an agent and ask them about that, and they say there is nothing they can do.
Now we know why so many people said if government gets to involved in this, it will get worse instead of better. Starting to sound true!
Folks, these kinds of things happen when you try to "learn as you go" and attempt short sales with no qualifications. I mean, not to sound mean or anything, but what makes agents think that they are qualified to handle short sales? Because they are real esttate related? Short sales are not real estate issues! They are banking issues, so unless you are trained or experienced in banking, you have no business doing short sales! The coming wave of consumer lawsuits against agents will drive this point home....Hire a professional!
www.short_sale_expert.activerain.com
Joseph, had to laugh and respond. This sale IS BEING HANDLED BY AN OUTSIDE PROFESSIONAL NEGOTIATOR hired by the seller. Which is part of the problem and why I hired my own experienced in-house negotiator. What makes agents qualifed? Many aren't, which is why so many short sales fail. But others will do a much better job than a disinterested 3rd party.
BTW, I see you're an agent, so then how are you a short-sale expert?