Strategic Realty

solutions for real estate

  • Buy
    • Search Real Estate
    • New Homes For Sale
    • Popular Communities
    • Golf Courses
      • Tetherow
      • Pronghorn
      • Lost Tracks
      • Brasada Ranch
      • Meadows
      • Woodlands
      • Crosswater
      • Awbrey Glen
      • Widgi Creek
      • Rivers Edge
      • Caldera Springs
    • Property Taxes for Deschutes County
    • Bank-Owned Properties in Central Oregon
    • Relocation to Bend
  • Sell
    • Quick Property Valuation
    • Short Sale FAQs
  • Read
  • About
    • Kerry O’Neal, Principal Broker
    • Catherine Emert, Principal Broker
    • Martha Hendrick, Principal Broker
    • Michele Dearden, Principal Broker
    • Andrew Smith, Broker
    • Rachael Osuna, Broker
    • Contact

How to beat a bank in 5 days: Final Chapter

By Catherine

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/

 

Filed Under: Blog Posts Tagged With: bank, bank approval, fannie mae, foreclosure, foreclosure sale, lender, mortgage, mortgage insurance, short sale

How to beat a bank in 5 days: Part I

By Catherine

Challenge Time

A good friend of mine calls some of the near impossible short sales I complete “trophies”.  Similar to a hunter who mounts his kills throughout his house, I collect short sale victories despite overwhelming odds and limited chance of success.  This may sound a bit egotistical, but it helps preserve what little bit of sanity I still possess.  Please take this with a grain of salt as the amount of empathy and sympathy I feel for each and everyone going through the process of losing their home, nearly sends me to emotional therapy sessions.  The sadness of what so many have lost takes its toll on my heart and soul every day.

Although I have faced many difficult situations with previous short sales and fighting tooth and nail with banks and loan servicing companies, I now face quite possibly the most challenging task thrown at me in the last 10 years of my real estate career:  Stop a foreclosure in 5 days.  The people are emotional.  The burden is heavy.  But the opportunity…the opportunity to help, the opportunity to take on another lender, and the opportunity to preserve some pride and instill some hope in another family; a family bleeding from economic carnage and the effects of a collapsed housing market, has never been greater.  This situation reminds me of the old adage “Never take a knife to a gun fight”.  Sorry Mr. Banker, you better be pretty good with a knife…End of rant.

p.s.  if I do get this done, you can bet I will blog about it and share everything I can to help the next person facing a similar situation.

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/

 

Filed Under: Blog Posts Tagged With: Banks, foreclosure, hope, lender, short sales

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

By Catherine

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.

Filed Under: Blog Posts Tagged With: bank, foreclosure, house, lender, mortgage, real estate, short sale, short sale real estate, short sales

The Latest

What First-time Homebuyers Need to Understand about Mortgage Interest Deductions

Purchasing a home is a significant milestone in many … [Read More...]

Real Estate Broker vs REALTOR®

When it comes to buying or selling a property, many people … [Read More...]

Single Family Home Prices in Bend: A Casual Review

The Bend Bulletin recently published an article talking … [Read More...]

Our Fans

Cheers and thanks again for EVERYTHING. - Marita

Popular Communities

  • Northwest Crossing Homes
  • Tetherow Lots and Homes
  • Sunriver Resort Homes
  • Pronghorn Lots and Homes
  • Caldera Springs Lots and Homes
  • Broken Top Homes for Sale
  • Awbrey Butte Homes
  • Awbrey Glen Homes
  • Brasada Ranch Homes
  • Crosswater Homes
  • Eagle Crest Homes for Sale
  • Eagle Crest Resort
  • Ranch at the Canyons Homes
  • The Highlands Homes and Lots
  • Vandevert Ranch Homes

let us help

No matter what you’re trying to accomplish with real estate, we’re here to help. Let’s start with a real estate conversation. Let us know how I can help.

We help you find your dream home

Office Location

We're conveniently located near the center of Bend, Oregon, in downtown. Stop by our full service brokerage and let us help take some of the mystery about of the buying and selling process.

New Office Location
325 NW Vermont St., #107
Bend, OR 97703

See Location

Follow Us

  • Facebook
  • Instagram
  • LinkedIn
  • YouTube

Copyright © 2023

Strategic Realty, LLC – (541) 595-8444

A full-service real estate brokerage licensed in the State of Oregon.