Today, we received a new REO assignment in Dayton, Nevada. It's always nice to have a new listing so we were anxious to get to work on it.
I was already on my way out to the Dayton Valley to have utilities turned on at a property we put under contract, so I did the occupancy check at the new listing. I pulled up and the place looked empty, except for the large unmarked truck and trailer out front. I thought maybe the previous owners were moving out.
I approached the young man at the door and asked if he lived there. He said - No, he was completing the trash out. GREAT, I thought. Not only is the property vacant, it's already getting rekeyed and cleaned out. FABULOUS! That's two steps ahead in the pre-marketing process.
There was still a real estate sign in the yard and a blue Supra iBox on the front door. I went inside the home and spoke with the older gentleman in charge of the trash out. He had just received the assignment that morning.
I made a courtesy call to the agent with the sign in the yard and told her that the listing had become a foreclosure and I would be more than happy to remove her box and bring it to her office if she liked.
She was SHOCKED! She said she had an offer in to the bank for a short sale and JUST TWO DAYS PRIOR she was told it was approved by both the bank and the private mortgage insurance company. It was going to its final signature process for the short sale to be completed at the bank.
How did this happen? I am not sure. I would have thought that the Loss Mitigation Departments would have housed both the negotiators for short sales and those in charge of foreclosures. Now I am beginning to think that's not the case.
I felt most badly for the seller who was only inches away from avoiding a foreclosure. It was not a case of time running out. It was a miscommunication among departments at the bank, and all the misfortune rests with the seller.
I am curious if anyone else has heard of this happening. I would like to think it's an isolated incident but I know better. I would bet that it's happening a lot more than we all even care to admit.
Posted By: Christianne Gordon - Northern Nevada Real Estate Agent - Realtor
with RE/MAX Realty Affiliates, specializing in Carson Valley Real Estate and Northern Nevada Real Estate.
I am not surpirsed at all. Not surprised at all. I have heard of it - just once but after doing many many many short sales and so many different lenders having different policies and procedures (or whatever you would like to call them cuz they're not really a procedure if you ask me) It doesn't surprise me. Very sad. when will they get it together and realize this is people's LIVES that are being messed up?
Absolute chaos would be more the words...I see every type of miscommunication combined with REO and Short Sale staff that are inexperienced, bpo's that conflict with each other and I could go on...
I think you'll get alot of comments on this topic.
Christianne: The last time I heard the phrase that the left hand didn't know what the right hand was doing... was when George Bush help up the wrong hands when he spoke these words. It appears that there are quite a few others who have this problem. I am so sorry for both your sellers and your buyers... and for you, of course.
Here we go again......
Another short sale tale. I've got three of my own.
Never again......
I've read of this several times here on ActiveRain.
Valerie - I don't know if the banks will EVER understand they are irreparably affecting the lives of REAL people.
Michael - Thanks for your comments. I find it hard enough simply accomplishing my tasks with REO companies and getting reimbursed for tasks they've ordered.
Karen - I am the REO agent. I didn't have the seller or the buyer in the short sale transaction (just to clarify).
Terry - I would not shy away from a short sale. I am not sure WHAT went wrong here. But I would still try for other folks. It's worth the effort if you can help someone.
Lenn - (this is completely sincere) - I have no doubt that you have seen thsi before here on AR since you are by far one of the most active members on here. I love reading your posts about some weird obscure something-or-other that someone wrote that is completely half-baked. Isn't it about time you found one for all of us to read? :-)
And, even worse, my "right hand" doesn't know what my "left hand" is doing either. The inmates are truly running the asylum.
Christianne, unfortunately I am hearing this way too often. The two departments in the banks do not speak with each other, nevermind with US or our SELLERS.
It is such a shame that they can't get it together.
Christianne, what a shame! The sellers, buyers and original listing agent are all losing opportunities! What lunacy!
What is worse is when you get a call from the "owner" who says the home is still his. He apparently had paperwork from his lender saying that they had re-negotiated the loan. I contacted my asset manager and they said for the owner to contact their lender again. I never heard from him again!
Christianne - We've had some tough experiences for sellers and buyers when the lenders different departments don't communicate. It is important to make sure they are talking to one another if you are close to actual foreclosure sale. Good for you on this one, but a real bummer for the seller who probably didn't know what hit them.