Archive for April, 2010

Bidding on a Bank-Owned Property Sucks!

Banks selling foreclosed homes have earned the reputation of being greedy and ruthless — that they don’t care about anything except getting every penny they can from the buyers bidding on their properties.
I should say the listing agents at many times are overwhelmed and don’t care about anything else except how much the bank will net by selling the house so they can keep their contract with the asset managers who hire them to sell the properties.
I had a frustrating experience with one of these so called “Bank-owned properties.” My clients made an offer on a home that was owned by Deutsche Bank after it was two days on the market. The listing agent instructed me that the seller would not entertain any offers that are NOT full price within the first 10 days of the listing. She went on to say that because my buyer needed closing cost assistance, that the closing cost amount should reflect above the list price. She also informed me that the bank based the list price of the home from an appraisal that was done five days or so ago, but could not give me a copy of the appraisal when I asked.
My client made an offer following the instructions of the listing agent. The home was listed at $164,900. My client offered $170,000 to reflect the 3 percent closing cost assistance. A couple of days later, the listing agent came back with a counter. Among other things, the seller wanted the buyer to waive the appraisal contingency and asked that the buyer pay for the difference between the appraised value and the purchase price if the home did not appraise for the offer price.
My client did not have the money to make up any difference. The seller was not willing to help. And despite our good faith effort to follow their instructions, the seller did not want to help my buyer if there was an appraisal issue duly caused by their pricing instructions.
My buyers’ hands were tied. If they made an offer that was below full price, it would not get reviewed. But if they offered above full price, they would be left to cover the difference compared to the appraised value, and in this case they could not and would not.
Talk about greed. That’s what got this society to the high number of foreclosures in the first place.
My clients were interested in resubmitting an offer at a price that they thought the home would appraise for, but I was told by the listing agent that additional offers had already been received. What kind of a game are these listing agents playing — trying to deny a very good offer by responding with a ridiculous counter while waiting for other offers to come in so they can play “highest and best” offer.
This practice is frustrating, annoying and based on greed. These REO agents are making good money contracting with asset management companies of lender-owned properties. I certainly hope that when the market turns around, they will get their just Karma for the treatment they gave to their fellow agents.

April 20, 2010 at 4:59 am Leave a comment

Chandler Realtor to Host Free Trustee Sale and Investor Seminar

How do you become a successful real estate investor? What is the Maricopa County trustee sale and what are the pros and cons of buying property through the sale?

Answers to these questions and many more will be available at a free Saturday, May 1, seminar being hosted by a Chandler Realtor.

Maria Hass of Realty Executives is sponsoring the 90-minute seminar beginning at 9:30 a.m. at the Realty Executives office located at 920 W. Chandler Blvd., Suite 1, in Chandler (NE corner of Chandler and Alma School).

Guest speaker and trustee sales specialist Jameson Van Ness of will provide information on the Maricopa County Trustee Sales and answer questions from attendees.

The seminar aims to inform consumers about the options available to them when considering properties at these trustee sales.

Seating for the seminar is limited. Please contact Maria Hass at (480) 650-0075 by Tuesday, April 27, to reserve a seat or ask questions.

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April 13, 2010 at 2:38 pm Leave a comment

How I was able to speed up a short sale with Bank of America

A month back, I wrote a letter to the Bank of America CEO Brian Moynihan seeking assistance with an overlong short sale saga involving his bank.
The short sale had gone through eight negotiators, three buyers, and two foreclosure postponements for nine months and counting without a resolution.
On the same day that the letter was received, a woman from Moynihan’s office called me, asking me to fax the documents and promising to assign the short sale to a senior short sale negotiator to expedite the process.
A month after that phone call, the short sale has still not been decided and is being acted upon slowly. So much for the so-called “Senior Negotiator.” I don’t feel that the file has been given any priority handling, despite the attention from the CEO’s office. It feels like nothing is different from the way a regular negotiator would handle the file.
I am frustrated and close to providing this story to the media. If the CEO cannot do anything about his employees, who can? Any suggestions are appreciated.
Update: Yesterday, I emailed the senior negotiator’s supervisor, CC’ed the CEO, and mentioned that my story would make a good media story. The supervisor called me instantly, clarifying the situation and saying she has instructed the senior negotiator to finish the task today. The file will be decided the next business day. Since then, the senior negotiator has been in contact with me via phone and email today to move the file forward for a decision. I am very grateful and happy that my short sale request has been prioritized.
Update: The following week, the short sale was approved without any promissory note or upfront cash from the seller. It took less than two weeks from the time the Sr. Negotiator received the file to get it done. I am delighted to end my ten month short sale saga with a clean approval. By the way, the Sr. negotiator was pleasant to talk to and made me feel like my file was the only one she is handling – which is sssoooo good.

April 3, 2010 at 4:57 pm 9 comments