Have you had an "approved" short sale deal sabotaged by the lender offering a principal reduction to your seller?
- No (64%, 79 Votes)
- Yes (36%, 44 Votes)
Total Voters: 123
We’ve heard recent reports of lenders pulling “approval” on short sales and offering the seller a principal reduction (just above the short sale price) and an interest rate (just above market rates). The lender ends up with a better deal than the short sale, but agents are losing out. Are your deals being scuttled by lender interference? Tell us your story!
Afro…you got screwed and so has every taxpayer, homeowner…even the current paying ones as they are paying the wrong lender and when the real one shows up they will find themselves in litigation wondering what the heck happened…I followed the rules. Beware those rules change when the banks are above the law. Our schools, counties, states have all been robbed. ….Support the bill up for a vote on the Homeowner’s bill of rights in the California Legislation. The banks are against so it must have some value for all those who have been taken advantage of and I can only think of a few that “have not” been taken advantage of….The banks and those who lobby on their behalf.
I had a short sale listing approved one time I could email to negociatator and ask questions
however the buyer backed up. I got 3 offers for at the approved price again submitted again this time I had another person from Chase Bank to deal with.This person never answered my emails or calls. The buyer had questions I sent her email(S) NO ANSWER. I had to call to superviser but nothing happened. Finally the buyer said after 3 month I don’t know what is happning I like to withdrew my offer. I sent the buyer ‘s email to that person. In less than a mintue I got response: so you don’t have a deal I am closing the file. I wrote her I am trying to get in touch with you for more than 3 month you are not responing to me but all a sudden in less than a mintue from my email you are closing my file? NO RESPONSE AGAIN
Finally the condo sold for $100,000.00 less in acution. YOU TELL ME WHAT IS GOING ON???
These are crazy times, like somebody started a thorough spring cleaning and never completed the job, everything is topsy-turvy and likely to go on for many moons.
Mike in SD: value can only be placed by the buyer, s/he who lays his/her money down. In an ideal world that would be the end of it, but the buyer is a human, therefore flawed: if s/he can steal and not get caught s/he will. That’s where courts and “judges” of all kinds, all of them human and thus all of them flawed, are inserted into the scheme, to try and balance things. No wonder the judge part of the job went to your head – it happens a lot, the God complex Pat in SF detects is right on.
The angry appraiser is correct in part, short sales leave great piles of almost free money on the table to be got by those who get the game and profit from its complexity and the amateurs at the table. But the proposal that “ethics” obligates brokers to sound the alarm when they see this occurring is idealistic childishness. There are no laws that demand return of found money to the rightful owner – and who is the rightful owner anyway? The seller who can’t make his mortgage? The bank who hires nincompoops to do extremely sophisticated work? The skittish buyers who tremble with their 3% downpayment in hand and need to see just afew more dozen “pockets” before they make their minds?
If all persons took ethics more seriously the entire industry, buyers, and sellers would all benefit, and the reputation for real estate salesmen and appraisers would rise substantially.
In addition, the increased trust in the public mind induced by higher ethics all round would surely benefit the overall happiness and job satisfaction of all parties involved in the sales process.
People do not realize that by following low ethical standards they not only sacrifice their honor, they sabatoge–in the long run–their own level of happiness, job satisfaction, and even their health.
It’s called Karma.
GentlePros –
Appraisers are NOT GOD; their methods not scientific and conclusions only opinions of comparative analysis with a hopeful logically documented end result.
Let the MARKET FORCES PREVAIL – if you don’t like the free enterprise system – WALK; as principal, lender, or broker.
I cannot believe an appraiser wrote this message. Is this the same appraiser we have all fought with in the past to get the value of an appraisal up? Fighting to get $5,000 more on a $450,000 property. Again, this appraiser shows the mentality that only he knows the value of a property. Your ego has gotten in the way as it has for so many years. It only goes to show how out of touch with reality some appraiser can be.
This person forgets that part of the problem with this financial crises are the problems created by appraisers. Does this person ignore all the appraisers that have been sued and lost their license for their appraisals.
Who ever you are, you need to take a good look at your “God” complex. It is really sad that someone like you is in the industry. You don’t have a clue about what has happened and what is happening.
here is the text of the memo i issued in april of 2006 regarding appraisals…i saw this issue forming.
<4/2/06
To all agents:
Effective immediately the company procedure for all files is that no assistance may be provided to an appraiser who is working for our clients whether they are sellers and buyers. We are not credentialed appraisers and our opinion of value is just that…an opinion of a non-professional.
So that the appraisers can do their job of dispassionately assessing the property for value you may not provide sales comps under any circumstances. Neither may you assist the lender in finding an appraiser. All reputable lenders have relationships with appraisers. If they do not they are questionable and our clients should be wary of using their services.
The importance to borrowers of getting an impartial professional opinion of value for loan purposes is of paramount importance to the loan process and we must avoid any interference so that they can be assured that their appraiser has done their job uninfluenced by any party to the transaction that might have a financial interest. This would include cooperating agents and their clients who are to be instructed to have no discussions with an appraiser.
The only exception to this rule is that you may accompany the appraiser to the property strictly for the purpose of opening the door for them. You may not discuss values with them.
dear angry appraiser,
are you saying large lenders that are being hoodwinked by realtors? really…are you that unsophisticated? are you saying that the lenders have no resources to promote and protect their own best interests? puhleeze! for every short sale i was ever a part of there was at least one BPO and commonly also an appraisal WHICH WAS THE LINCHPIN OF THE DEAL. banks choose their processes and are well aware of the limitations of a BPO as opposed to an appraisal but they choose not to use appraisers for their own reasons. perhaps they don’t trust you guys after they learned that many of your brethren are as crooked as a dogs back leg. the very largest percentage of sales had an appraisal…are you saying the appraisers that made them happen have clean hands? really? i can introduce you to a dozen appraisers that couldn’t find their ass with two hands…they were perfectly happy to use the comps provided by an agent. good lord, it got so bad i issued a memo to my agents that they were not permitted to even talk to the appraisers much less deliver “comps”…i didn’t want their hack work product being ascribed to me in any way shape or form.
along with dozens of crooked realtors i can introduce you to an equal number of crooked appraisers. if you’ve been in your trade for more than a few years you know plenty of “professionals” that are best described as lapdogs to the lenders the work for.
your cry of valuation fraud is laughable. brokers do not assign a value…appraisers do. that’s their specific function. if you have a problem with valuations you need only attend an appraisers convention and start scolding your own.
i will remind you also that we are NOT charged with protecting the interests of the note holders…only the owner/seller.
I AGREE WITH THE ABOVE STATMENT. End result a lack of homwners being able to list their
homes and move on with their future. For a realtor no job for a period of time.
Short Sales may be the biggest CANCER in this market
10 of thousands of homes are being sold UNDER MARKET.
The realtors who sell them
should be BANISHED from the industry for
VALUATION FRAUD.
If sellers only knew..