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How to beat a bank in 5 days: Final Chapter

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How to Beat a Bank in 5 days: Conclusion

This is the final part to a multi-episode, written depiction of a real life short sale.

It’s been awhile since I last updated this story, partly because we were working the short sale and partly because the outcome was so brutal. After much waiting, I beat the loan servicing company (which was amazing given the fact that the negotiator was the single most unpleasant person I have ever talked to), then I beat Fannie Mae and they approved the file, and then (cue ominous music)……the mortgage insurance company said they won’t agree to the sale unless the borrower signed a $25,000 note payable at approximately $350/month. One word (no, it’s not that word). Awesome.

I tried to get them to settle for less, to give a cash option, etc., because maybe, just maybe, the buyer would be willing to contribute to make the deal happen or we could find another solution. Just to summarize, 1) The seller couldn’t make their mortgage payment because they didn’t have the money 2) they had to uproot their family from a home they loved because they didn’t have the money 3) They couldn’t sell because the house was worth about ½ as much as they paid and they didn’t have the money to sell and make up the difference. So logically, the MI company realizing how much money the seller had (clearly defined above in the summary…ZERO), decided their portion of zero is $25k.

Needless to say, the deal fell apart and another foreclosure hit the market. To further illustrate the incompetence, we had an offer about $35k higher than the valuations the bank and previously mentioned idiots had in their possession, the mortgage insurance company still has to pay the bank the same amount, the buyer didn’t get the house, the brokers didn’t get paid, and Fannie Mae added to their ever-increasing property tax bill for Deschutes County. Oh and by the way, when the property came back on the market, the list price was $10,000 less than our offer.

Moral of the story: The banks, Fannie Mae, and mortgage insurance companies don’t care about the borrowers. They accept zero responsibility for their lending standards and practices and blame everything on the homeowners. Good news for them though, Uncle Sam will continue to fund their massacre of the people who are trying to do the right thing. I’m sick of it and my heart goes out to those who are dealing with this. End of rant.

Other parts of this series:

Part I:  https://movetobend.com/how-to-beat-a-bank-in-5-days-part-i/

Part II:  https://movetobend.com/how-to-beat-a-bank-in-5-days-part-ii/

Part III: https://movetobend.com/how-to-beat-a-bank-in-5-days-part-iii/

Final Chapter: https://movetobend.com/how-to-beat-a-bank-in-5-days-final-chapter/

 

How to beat a bank in 5 days: Part II

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How to beat a bank in 5 days: Part II

The following is the second part to the blog series “How to beat a bank in 5 days: https://movetobend.com/how-to-beat-a-bank-in-5-days-part-i/

Day 3: Day 1 and 2 consisted of mad scrambling to get each and every document to the lender. After running around town and a tremendous effort by the owners of the home, the bank received the last document they needed last night at 6pm (my time). I called in the morning to verify receipt only to find out the gentleman handling the file and his boss/supervisor were both out of the office for the day. Luckily, the woman I spoke to was the same one I spoke to the day before. She not only confirmed receipt, but had her supervisor (as I am typing this, I just realized this bank has a ton of supervisors) help escalate the file and get it to the loss mitigation department (insert ominous music here). She told me I should be able to get some info by the end of the day around 5:30pm my time.

I called an hour early just to make sure I could reach her and I couldn’t get through to anyone except voicemail. When I heard the voicemail I started pushing buttons trying desperately to get a human. After the 3rd voicemail, I hit the zero key one more time and punched in an extension previously given to me. Someone answered. The connection was terrible and I could barely hear him. I asked for her, told him the extensions I already tried, etc. He tried to locate her but couldn’t, and then asked if he could help me. I went through the normal routine and gave the account number, my name, the property address, borrower’s social security number, and favorite color (other than the favorite color, this is usually what banks ask to make sure I have authority to discuss the account and that a stranger isn’t calling to steal the identity of the person losing their house). After confirming I was me and he was him, he proceeded to tell me that the request for extension was rejected by guess who? Yep, a supervisor.

“Why?” I asked.

The man replied “…because we can’t get a broker price opinion done before the foreclosure auction date.”

My heart sank. If at first you don’t succeed…. I pleaded with him. He asked the offer price. Instead of asking what the (insert superlative) does this have do with the auction being delayed, I composed myself and said “$x thousand”. Before he had time to respond, I started in explaining how long this home has been on the market, how this was a miracle offer given property condition, the tragic state of our real estate market, and that the only reason we received the offer was because we found the one person in the world who would have interest in this “unique” property. I finished with “Trust me. You guys don’t want this one back.”

He said he would transfer me to the gentleman responsible for the denial (supervisor, in case you forgot) but explained I would have to leave a message and wait for him to get back to me. I thanked him and waited for voicemail. Then what to my wondering ears should appear…a live person chimed in and said “Hi, this is Aslan. May I help you?” (To protect the privacy of the individual, I have selected a fictitious name).

I started over. “Aslan, my name is Josh Hansen and I am trying to find out why the request for a short sale was denied for this file. Can you help me?”

He replied “We just don’t have enough time…I mean, it’s 6pm my time, 5pm your time…and the sale is less than 2 days away. There is no way we can get a value prior to the auction time.” Composure is key with these people.

Instead of duh, I have a clock and duh, I know your time is 1 hour ahead, and duh, the auction is on Friday, I kindly replied with “I know, Aslan. That is why it is so important we talk about this now.”

He continued “If we had this paperwork 30 days ago, it would be…”

I interrupted “30? How about 60? Trust me, Aslan, If we had received an offer earlier, I would have gladly submitted it (courtesy chuckle). Problem is, we didn’t.”

“I know, I know…” he said and then paused. I had him. “Well” he continued, “What is the offer price?” (Seriously, what is the deal with the stupid offer price?).

“$x thousand” I replied. “Look, I’m not asking for an indefinite postponement, just long enough for you to evaluate the value so everyone involved will know this is a great deal for your bank. Trust me; you don’t want this one back.”

After stammering for an eternity of 3-4 seconds (which, given the hour difference and short time frame, seemed like forever), he said “Well” he sighed and then continued “It’s about 6pm my time and I doubt the person who can help us is still in the office, but I will call him. Is it okay if I call you back in about 20 minutes? Is the number you called from the best one to reach you at?”

Again, composure is key. Rather than “Don’t end a sentence in a preposition” I said “Absolutely, Aslan. You can call me anytime.”

He finished with “If I can’t reach him, I will call you in the morning.”

I responded “Oh, thank you Aslan, I can’t tell you how much I appreciate your help”. To be continued….

Note from the author: For what it’s worth, even though this post is laden with sarcasm and seemingly insincere gestures, I am very thankful for how this bank is treating me on the phone and everything they are doing to help the borrowers avoid foreclosure (if they don’t postpone, I won’t be surprised and I assure you I will broadcast their ineptitude via every outlet I can find). But, at least they are kind. End of rant.

Other parts of this series:

Part I:  https://movetobend.com/how-to-beat-a-bank-in-5-days-part-i/

Part II:  https://movetobend.com/how-to-beat-a-bank-in-5-days-part-ii/

Part III: https://movetobend.com/how-to-beat-a-bank-in-5-days-part-iii/

Final Chapter: https://movetobend.com/how-to-beat-a-bank-in-5-days-final-chapter/

 

B of A provides self-incriminating short sale evidence

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Good things come to those who wait!

I have been dying to write about this.  Seriously, other than obtaining our Facebook MovetoBend page, this is the single most exciting thing that happened today! (maybe this week)  After digging for information, etc. on their short sale and help for homeowner programs, I found the single biggest line of B.S….Ever!  And it’s published on Bank of America’s website!  Normally the links I post will take you straight to the subject matter.  This time you will actually have to select “Short Sale” from the drop down topic list if you want to see it for yourself.  Tell you what, I’ll save you the trouble.  Here’s a direct quote from the Bank of America website:

“Because of the number of people and amount of paperwork involved in a short sale, it can take longer than a traditional home sale. Typically it takes 45 to 90 days after the initial offer is accepted to finalize, although timelines can vary based upon current market conditions and your particular circumstances”

I hate writing in all caps, but this is an event worthy of stepping up the font to Calibri size 14, bold, and AND in full caps.  Ready?

THIS IS ABSOLUTELY NOT TRUE.  NOT EVEN KIND OF TRUE.  IT IS SO DISHONEST THE FTC SHOULD STEP IN AND ENCOURAGE EVERYONE WITH A LOAN SERVICED BY BANK OF AMERICA TO JOIN A CLASS ACTION LAWSUIT AGAINST THEM.

45 to 90 days?  Amount of paperwork involved?  Timelines can vary?  You’ve got to be kidding me.  They would be just as truthful by saying 1-2 days, but timelines may vary.  Joke, joke, joke!  I received approval on one deal and the negotiator wouldn’t even quote a timeframe for issuance of the approval letter!   This was one step away from full blown approval! If you took the most recent “finalize” I received from them and averaged it with a 1 day closing, which is impossible, the average, that’s right average, would be approximately 99 days!(Here’s a quick math problem:  (X+2)/2=99) X=?)  I am not exaggerating or joking.  Don’t believe me?  Call my seller and ask her how agonizing and brutal a late Jan. closing is when you receive an offer in mid-July.  “…timelines can vary based upon current market conditions…”  Yeah, because the market has fluctuated sooo much lately.  “…particular circumstances”?  How about broke, broke, and hmmmm….oh yeah, broke.  This is the most brutal statement and bald face lie I have ever seen.  This makes adultery look like a noble act….End of rant.

Fells Wargo

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I sell homes in Bend Oregon.  Homes for sale in Bend have finally started moving at a very healthy pace.  But today, though not as frequently, we still deal with short sales and they are still extremely trying events.  For those of you frustrated with short sales (still), this should help you feel not so alone in the frustration and hopefully give you a smile at the same time.

This post was going to be about the US Treasury allocation of funds and then Wells Fargo asking for documents (documents they already received) and corrections to documents for a short sale.  But instead, I’m going to focus on the short sales first, before I move on to the US Treasury (which, if the Treasury would do, might help the housing market).

I sent in a myriad of documents for a current short sale.  Wells Fargo confirmed receipt and then assigned me a “pointman” (more like a dullman).  He then asked me for several documents he already had.  Easy enough to believe and not much further explanation needed.  Here comes the fun part.  He sent me an email asking for some corrections to the already collected documents.  I’m going to call these “Brutals”.

Brutal #1:   “Pointless in Seattle” states in an email: “The HUD1 states a sales price of $X and the sales agreement shows $X+$6k and these numbers need to match (for those of you that don’t know, a HUD1 is a statement issued by an escrow company showing the exact breakdown of costs/credits at the closing of a real estate transaction).  These need to match.  So I open the file I sent him and check both the price on the HUD1 and the sale agreement and guess what?  Yep, they match.  That’s what I get for sending mixed messages,  I mean, the HUD1 says:

“Contract Sales Price:  $X,000”  and the Sale agreement says “…for the purchase price (US Currency) of…..$X,000”.  Actually, now that I just typed it, the (US Currency) thing is a bit confusing…  I wish google had a construction paper email body with giant color Crayons and a pretty color palette so I could draw pics for this person.  Actually, Crayons wouldn’t help because he wouldn’t read that either.  Where’s the rubber stamp when you need it?

Brutal # 2  “Dullness in Delaware” writes: “The buyer’s preapproval letter must show that he is getting a loan for at least 60% of the purchase price.”  Second sentence, second! of the preapproval letter:  “The loan is a conventional  conforming…with 10% down”!  Well, he can read but doesn’t and can’t add or subtract to save his life.  Thank goodness the banks received all of that cash from the government so they can hire people who can actually count to a hundred.  I was waiting for him to bust out the line from Gladiator “Are you not entertained???”  End of Rant.  Later.

footnote:  I have worked with many banks and many negotiators.  Their desks are piled high with as many as 100 files at a time.  And not all of them are the same.  If you are a negotiator or other employee at a big bank,  I am not knocking you.  Your company, yes.  And for untrained employees and negotiators of banks in general, at least be kind and don’t lie.  It only makes you look worse.

For more articles and blog by Strategic Realty, please visit our Bend Oregon real estate blog here:)

What is a short sale? Loan modification? Deed in lieu of foreclosure?

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A mortgage short sale, most commonly known as a short sale, is selling your home or other real estate for less money than you owe the lender. In a short sale, the bank will get less than owed and therefore must approve the sale of your property. Working with banks to complete a short sale is a very long and drawn out process, but when used in the right situation, will help decrease credit damage and the amount of bad credit you deal with in the future.
A loan modification, also called a “loan mod”, is when a bank agrees to change the terms of your loan so you can afford your payment. In a loan modification, some banks will cut the interest rate of your loan, some reduce the total amount you owe, and some banks will do both. Here’s and example: You owe $250,000 on your home, your interest rate is 6%, and your monthly payment is $2500. The bank reduces the amount you owe to $200,000, changes your interest rate to 3%, and thus, lowers your monthly payment to $1500. These numbers are not real numbers and the terms of each modification vary greatly from bank to bank and person to person. The loan modification process is also long and tedious, but if done correctly, is well worth the headache.
Deed in Lieu of Foreclosure is giving ownership of your home or property back to the bank to avoid a foreclosure. Basically, you say “here are the keys Mr. Bank” and they say thank you and move on. There is still paperwork and approval from the bank involved with this process also.
Short sales, foreclosures and deed in lieu of foreclosure may have tax consequences for you. The only way to find out what the consequences entail is to talk with a certified public accountant or tax attorney about your particular situation.

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