Banks Being Difficult About Short Sales
So i was calling on one of my many files, attempting to negotiate a short sale for a client when I came across some difficulty. Normally the real estate short sale process begins with faxing in a authorization letter to the bank proving I am allowed to talk them about the short sale on behalf of my client. This phone call with the bank started off as all the other ones do, being put on hold several times before talking to the Loss Mitigation Department explaining we are attempting a short sale on this account. It was after this point when the conversation took a different turn. The gentleman on the other side of the phone proclaimed to me they weren’t able to discuss the short sale any further until went sent them a processing fee of $300. Now while I understand they have hundreds possibly thousands of files cross their desk on any given week most of which probably don’t have legitimate offers with them, how can they charge the homeowner (who has to be in a hardship to even qualify for a short sale) this fee? The real estate homeowner with $17 dollars in his account surely can’t pay it. I have done nothing wrong but trying to help this man out, so I feel I shouldn’t have to pay it. I was in complete shock and awe. I was speechless! I guess this is what the banks are coming to now with these short sales. They are desperate and looking for an easy out. Who should really pay the price I guess? Is it the distressed homeowner trying not to go into foreclosure? Is it the real estate agent? Or should the bank take the fall for these short sales? You tell me!!
- Jeff Buettner
Real Estate Wiz Kid
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April 14th, 2008 at 7:04 pm
If a processing fee was never needed for a short sale before, then no one should have to pay. If I were you, I would call around to other banks and see if they charge for the same process. $300 dollars seems a little ridiculous to require someone to pay just to sell their house. Afterall, don’t you think the banks would want people selling their houses (resulting in people buying houses) so that they can earn profit off of loans and interest?
xoxo
Zoe
July 29th, 2008 at 3:27 pm
I would be very interested in knowing which bank is pulling this stunt. Homeowners need to be warned if they’re working with this bank.
July 29th, 2008 at 4:38 pm
Well thank you Michelle for the inquiry! It is really appreciated! This happened to me when negotiating an IndyMac short sale deal. There were many hours of arguing and negotiating but unfortunately my buyer soon dropped out due to the lengthy short sale process. From the information I was able to gather this fee was either an attempt by IndyMac to sift through low ball time wasting offers or it was a weird requirement of an unusual investor. I would love to hear if anyone has any difficult stories like this one?