Comments on: Short Sales and Stupid Lenders http://www.phoenixrealestateguy.com/short-sales-and-stupid-lenders/ Phoenix real estate | Search Phoenix Homes for sale | Real Estate Blog Sat, 20 Mar 2010 06:20:16 -0500 http://wordpress.org/?v=2.8.6 hourly 1 By: Mortgage Experthttp://www.phoenixrealestateguy.com/short-sales-and-stupid-lenders/#comment-64210 Mortgage Expert Fri, 29 Jan 2010 16:05:31 +0000 http://www.phoenixrealestateguy.com/short-sales-and-stupid-lenders/2049#comment-64210 Lending insititutions need to be reformed just a much as banks do! The reason we are in this mess is because of the bonus based culture that insititutions operated. What changes do we see? Well the B of A recently recruited their CEO internally (not much reform here then.) andbonuses are still being paid but now WE are paying for them through our taxes. Now we have to deal with bent congressman too. Lending insititutions need to be reformed just a much as banks do! The reason we are in this mess is because of the bonus based culture that insititutions operated. What changes do we see? Well the B of A recently recruited their CEO internally (not much reform here then.) andbonuses are still being paid but now WE are paying for them through our taxes. Now we have to deal with bent congressman too.

]]> By: What is a Short Sale? — The Phoenix Real Estate Guyhttp://www.phoenixrealestateguy.com/short-sales-and-stupid-lenders/#comment-63521 What is a Short Sale? — The Phoenix Real Estate Guy Mon, 18 Jan 2010 17:29:31 +0000 http://www.phoenixrealestateguy.com/short-sales-and-stupid-lenders/2049#comment-63521 [...] [...] [...] [...]

]]> By: Same Problem Bankhttp://www.phoenixrealestateguy.com/short-sales-and-stupid-lenders/#comment-52359 Same Problem Bank Tue, 05 May 2009 03:43:32 +0000 http://www.phoenixrealestateguy.com/short-sales-and-stupid-lenders/2049#comment-52359 BTW, the above short sale's bank is the same one that gave you a problem. I feel your pain. Same runaround. BTW, the above short sale’s bank is the same one that gave you a problem. I feel your pain. Same runaround.

]]> By: Lender MI and not Seller MIhttp://www.phoenixrealestateguy.com/short-sales-and-stupid-lenders/#comment-52346 Lender MI and not Seller MI Mon, 04 May 2009 17:54:24 +0000 http://www.phoenixrealestateguy.com/short-sales-and-stupid-lenders/2049#comment-52346 My short sale failed. Why? Lender MI requiring Promissory Note to be paid by Seller. $20K / 10 year note negotiated down to $10K / 10 year note, but Seller cannot pay the note. Hello? That's why it's a short sale. Seller can't afford anything.BPO was approved and we were waiting for approval to open escrow and then BAM! Bank negotiator says Seller has MI. Seller contends and proves no MI on account. Paperwork faxed from escrow and Bank EOY statement. Bank's Customer Service even says no MI on account. Bank negotiator will not provide any proof of Seller MI thru emails and insists there's MI. Not once did negotiator say it's the Lender's MI.After 3 weeks of trying to prove no Seller MI, negotiator states that Promissory Note by MI is required or cancel request. BTW, this Bank has a short sale classified has Home Retention. Seller cannot pay anything so Bank negotiator cancels request - Home Retention request - April 16. Foreclosure scheduled April 27. Foreclosure does not happen - postponed until May 27 because it's was under a Home Retention request. What? That was canceled already.Bank says Freddie Mac moratorium required postponement. Bank says call Freddie Mac. Freddie Mac says the vacant home does not qualify for moratorium and escalates to Bank to foreclose.No need to put the house up for short sale since Lender-owned MI will get in the way again. The house is desirable and gets multiple offers for the short sale, but the Bank takes too long and then is now bringing up the Lender-owned MI to be paid by the Seller. Get ready for even more frustration!Buckeye, AZ My short sale failed. Why? Lender MI requiring Promissory Note to be paid by Seller. $20K / 10 year note negotiated down to $10K / 10 year note, but Seller cannot pay the note. Hello? That’s why it’s a short sale. Seller can’t afford anything.

BPO was approved and we were waiting for approval to open escrow and then BAM! Bank negotiator says Seller has MI. Seller contends and proves no MI on account. Paperwork faxed from escrow and Bank EOY statement. Bank’s Customer Service even says no MI on account. Bank negotiator will not provide any proof of Seller MI thru emails and insists there’s MI. Not once did negotiator say it’s the Lender’s MI.

After 3 weeks of trying to prove no Seller MI, negotiator states that Promissory Note by MI is required or cancel request. BTW, this Bank has a short sale classified has Home Retention. Seller cannot pay anything so Bank negotiator cancels request – Home Retention request – April 16. Foreclosure scheduled April 27. Foreclosure does not happen – postponed until May 27 because it’s was under a Home Retention request. What? That was canceled already.

Bank says Freddie Mac moratorium required postponement. Bank says call Freddie Mac. Freddie Mac says the vacant home does not qualify for moratorium and escalates to Bank to foreclose.

No need to put the house up for short sale since Lender-owned MI will get in the way again. The house is desirable and gets multiple offers for the short sale, but the Bank takes too long and then is now bringing up the Lender-owned MI to be paid by the Seller. Get ready for even more frustration!

Buckeye, AZ

]]> By: Thesa Chambershttp://www.phoenixrealestateguy.com/short-sales-and-stupid-lenders/#comment-51301 Thesa Chambers Thu, 16 Apr 2009 04:41:39 +0000 http://www.phoenixrealestateguy.com/short-sales-and-stupid-lenders/2049#comment-51301 I loved this story... it is amazing how even when you do everything right something so stupid can happen.... I am surprised they did not try to put the blame on you.... as you can see... great story thanks for sharing*<em>*<em>Thesa Chambers´s last blog post..<a href="http://www.centraloregonbuzz.com/blog/central-oregon-short-sale-facts">Central Oregon Short Sale Facts</a></em></abbr></abbr></em> I loved this story… it is amazing how even when you do everything right something so stupid can happen…. I am surprised they did not try to put the blame on you…. as you can see… great story thanks for sharing

**Thesa Chambers´s last blog post..Central Oregon Short Sale Facts

]]> By: Central Oregon Short Sale Facts | Central Oregon Real Estatehttp://www.phoenixrealestateguy.com/short-sales-and-stupid-lenders/#comment-51297 Central Oregon Short Sale Facts | Central Oregon Real Estate Thu, 16 Apr 2009 03:53:54 +0000 http://www.phoenixrealestateguy.com/short-sales-and-stupid-lenders/2049#comment-51297 [...] The problem is, mortgage lenders have to approve every short sale. This makes sense, as they are the... [...] [...] The problem is, mortgage lenders have to approve every short sale. This makes sense, as they are the… [...]

]]> By: Brewer Caldwellhttp://www.phoenixrealestateguy.com/short-sales-and-stupid-lenders/#comment-50261 Brewer Caldwell Thu, 02 Apr 2009 17:58:58 +0000 http://www.phoenixrealestateguy.com/short-sales-and-stupid-lenders/2049#comment-50261 Pretty desperate for them to also add a per dium late fee if you dont close on time even though they gave in this case only 16 days for closing to take place putting the buyer in an almost impossible spot! They might as well have just increase the sales price 15 days late fee per dium! There are some funny people out there that is for sure. It really doesnt make any sense. How ironic, the stimulous of the economy is the banks/lenders bread and butter,, but yet they shoot themselves in the foot by making it impossible to buy a home with these kind of time frames! Pretty desperate for them to also add a per dium late fee if you dont close on time even though they gave in this case only 16 days for closing to take place putting the buyer in an almost impossible spot! They might as well have just increase the sales price 15 days late fee per dium! There are some funny people out there that is for sure. It really doesnt make any sense. How ironic, the stimulous of the economy is the banks/lenders bread and butter,, but yet they shoot themselves in the foot by making it impossible to buy a home with these kind of time frames!

]]> By: Troy Reynoldshttp://www.phoenixrealestateguy.com/short-sales-and-stupid-lenders/#comment-50070 Troy Reynolds Tue, 31 Mar 2009 02:03:37 +0000 http://www.phoenixrealestateguy.com/short-sales-and-stupid-lenders/2049#comment-50070 What risk do short sales have for the buyer? Any? What risk do short sales have for the buyer? Any?

]]> By: Jason Humpal-Fort Collins Real Estatehttp://www.phoenixrealestateguy.com/short-sales-and-stupid-lenders/#comment-50005 Jason Humpal-Fort Collins Real Estate Mon, 30 Mar 2009 04:04:36 +0000 http://www.phoenixrealestateguy.com/short-sales-and-stupid-lenders/2049#comment-50005 I love my job, dealing with clients, finding homes for them, selling homes...I LOVE everything; HOWEVER, when this kind of stuff happens, it is enough to make me rip my hair out. Sorry for your frustration, I can completely understand. I hope your buyer was able to get the house they wanted. I love my job, dealing with clients, finding homes for them, selling homes…I LOVE everything; HOWEVER, when this kind of stuff happens, it is enough to make me rip my hair out. Sorry for your frustration, I can completely understand. I hope your buyer was able to get the house they wanted.

]]> By: Kevin Sandridgehttp://www.phoenixrealestateguy.com/short-sales-and-stupid-lenders/#comment-49771 Kevin Sandridge Thu, 26 Mar 2009 18:49:10 +0000 http://www.phoenixrealestateguy.com/short-sales-and-stupid-lenders/2049#comment-49771 Agree here with the overall sentiment that lenders/banks are completely standing in their own way on this issue. I get that many of them cut staff months back - and some have yet to ramp up their Short Sale review departments (cause, you know... that would make sense)... but geez!*<em>*<em>Kevin Sandridge´s last blog post..<a href="http://www.floridamortgageblogger.com/2009/03/19/a-tweet-by-any-other-name/">A Tweet by Any Other Name…Using Twitter to Increase Blog Traffic</a></em></abbr></abbr></em> Agree here with the overall sentiment that lenders/banks are completely standing in their own way on this issue. I get that many of them cut staff months back – and some have yet to ramp up their Short Sale review departments (cause, you know… that would make sense)… but geez!

**Kevin Sandridge´s last blog post..A Tweet by Any Other Name…Using Twitter to Increase Blog Traffic

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