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.
How to beat a bank in 5 days: Part I
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/
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.