Comments on: Short Sales and Stupid Lenders

By: Same Problem Bank

Same Problem Bank — Tue, 05 May 2009 03:43:32 +0000

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 MI

Lender MI and not Seller MI — Mon, 04 May 2009 17:54:24 +0000

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 Chambers

Thesa Chambers — Thu, 16 Apr 2009 04:41:39 +0000

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 Estate

Central Oregon Short Sale Facts | Central Oregon Real Estate — Thu, 16 Apr 2009 03:53:54 +0000

[...] The problem is, mortgage lenders have to approve every short sale. This makes sense, as they are the… [...]

By: Brewer Caldwell

Brewer Caldwell — Thu, 02 Apr 2009 17:58:58 +0000

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 Reynolds

Troy Reynolds — Tue, 31 Mar 2009 02:03:37 +0000

What risk do short sales have for the buyer? Any?

By: Jason Humpal-Fort Collins Real Estate

Jason Humpal-Fort Collins Real Estate — Mon, 30 Mar 2009 04:04:36 +0000

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 Sandridge

Kevin Sandridge — Thu, 26 Mar 2009 18:49:10 +0000

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

By: Exit Realty Nova Scotia

Exit Realty Nova Scotia — Mon, 23 Mar 2009 16:53:37 +0000

Is the plan to buy toxic assets going to make it easier to get short sales approved or do you think it will have any effect?

By: Linda Craft-Raleigh Area Real Estate

Linda Craft-Raleigh Area Real Estate — Sat, 21 Mar 2009 21:01:09 +0000

Short Sales can be such a huge headache, esp when banks pull this kind of *stuff * and making it impossible for a homebuyer to BUY the home!