Back in the Saddle
After nearly 2 days off and spending considerable and overdue time with my family, I climbed back on the horse on a Monday, quasi-holiday. Wanting and almost hoping for banks to be closed, I reluctantly called my good friends at Fells Wargo with the slight chance they might actually be open. As you may know by now, they are not my good friends, but more like an ingrown toenail. But, they were open. And as usual, with broken systems and poor customer service, they might as well have been closed. In fact, I’m going to convince myself that they were closed and me calling was just a figment of my imagination; a dream perhaps. A bad dream.
So I inquired about the progress of my latest short sale and asked if they had a record of receiving the last batch of documents I sent to them. They didn’t, big shock, I didn’t expect anything different, the toenail hurts, at least it’s Monday, and why I continue to believe tomorrow will be different with them, it won’t (for kids at home reading this, the last sentence was totally a run-on sentence and should be avoided throughout your educational careers). In an effort to stave off total depression, I asked if the last person I spoke to updated the notes as I requested on 3 days prior. The woman I was speaking to said “no”. “Nothing? Not one note on Friday from me?” I asked. “No sir, not from you.” Unbelievable! I was lied to again! (And I’m surprised? What is wrong with me? Back to the story.) “Well,” I continued, “are there any notes on the account from Friday?” She said, “Yes”. “From who?” I asked in my most patient and tongue biting politeness. “From an authorized 3rd party.” Holy $*#* ! And people wonder why short sales suck and take so long? The people on the opposite end of the horse are incompetent and lazy. The result? Some mysterious “3rd” party” angel decided to call in and reference the short sale offer, documents, etc., directly corresponding to the negotiator’s last comment, at the exact date and time as myself. What are the chances? But, it wasn’t me. Well what do ya’ know…even the soldiers of almighty deities can’t help with short sales. End of Rant.
B of A provides self-incriminating short sale evidence
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
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.
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What is a short sale? Loan modification? Deed in lieu of foreclosure?
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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