I have a listing since November started at $290,000 so client could break even, they purchase this property new 5 years ago and put 10% down payment, had a loan mod early in 2009, but fell behind again and have not make payment since Sept. They were serve by the sheriff with NOD, I have lowered the price every 15 days since first week of November and listing was at $225,000 when the NOD was served. I talk to lender and they told me that foreclosure is schedule for March. I lower the price to $200,000 talk to sellers and they wanted to sell right away.
Finally got several showings at $200,000 and some agents requested disc and disclaimers with serious interest.
Last night the sellers received a visit from a friendly HRC who told the sellers not to short sale the house, because the Wells Fargo wants to help them keep their home and had already approve a loan modification and that they have to call "warm" line on Tuesday since the banks were close Sunday and today because of the holidays.
Because of this visit my clients cancelled the listing today because they are sure the bank is going to give them a loan modification and help them save their home, that is why they sent a rep to meet with them and give them the good news.
Yes as I said before I am upset for the wasted time, effort and money, but I am also concern about my clients house, I might be wrong but they might be too late for the loan mod, and the husband is unemployed, when I did the financial sheet for them before they were in a red $1300 a month. I have never seen a bank taking that much of hit on a loan modification. I hope things workout for them, but I am afraid of the worst since I know the foreclosure process already started and the house will be up for auction in the next couple of weeks.
I admire the good intentions of the HRC, but don't you think that he/she should know the house is listed, they are already talking to a professional and getting advise, the HRC only knows that there is a letter from the bank, and that he/she has an assignment to do a warm transfer, etc, I think common sense is that the HRC are sent because home owner has not been in contact with the bank, and now the HRC is a walking collector, that is why we have to tell them the Miranda disclosure. If the property is listed as a short sale then the listing agent has permission to talk to the bank and most likely has been in communication with the bank.
I really don't blame the HRC too much, the biggest problem is that the banks have too many departments and too much red tape and those departments are not communicating with each other creating chaos among home owners, agents and buyers.
I am sorry for this very negative and frustrating post, but I needed to vent, and I would like to see your point of view.
Comments
The real problem here is agents do not want to speak to each other. Listing agent would get upset for possiblity of loosing a listing, even though it may help the homeowner to keep his/her home. And Titanium representative have a fear of contacting the listing agent because some listing agents are greedy, rude and don't really want to loose their $$$. So they tell the homeowners not to speak to the Titanium agent. I think the listing agent should contact the Titanium agent and tell them the homeowner does not have a job/income to do the loan mod. That way, the representative will not waste his or her time.
There is a government program which homeowners should look into if they want to do a loan mod. All agents should send their clients at this website at http://www.makinghomeaffordable.gov. before they take the listing. That way, the homeowner will know if they qualify for a loan mod or not, and you know you have a solid lisiting to work with.
Here is some info from a California Lawyer - http://www.hafaprogram.com. I believe it may affect all states on this one. Just a FYI - I was on a HUD webinar. According to the representative from HUD, she said if the homeowner go through short sale, they can buy a home in about 3 years, provided they have a good rating at that time.
Now read Part J & K of the HRC Contract is -J- short so here it is. .............................................................. J..."HRC indep. contractor hereby agrees that it will not make any solicitations to a HomeOwner-Borrower to sell the HO-B's residence unless and until the TTS assigment is complete .(now read this clearly) This covenat SHALL NOT PROHIBIT THE HRC indp. contractor/(R.E agent) from accepting a LISTING if the HO-Borrower VOLUNTARILY requests that the HRC Indep. contractor shall SELL the Residence." ...and you know why is this 'I WILL LOOK THE OTHER WAY" agreement written this way? you have to read part "k" of the contract.
in short (becouse is long) K goes this way . "TTS contract tells- you (HRC) can listed but, just let us know within 48 hours of obtaining the contract. you have to give (TTS) a copy of LISTING contract and once it closes you have to kick back a 25% referrall fee, from the sale of the property. and the closing attorney has to write a check directly to TTS........BLA BLA BL ......................... The word "fee" and "pay" to TTS is used more than 14 times on part -K- of the HRC contract. I would like to know what the TTS Regional has to say. keep us updated. I would also like to know if J & K agreements still are on the HRC INDP. CONTRACT of 2010. someone that i know said to me up to 2009 was still there. Let us know.
The party I would not want to be in the HRC or even Titanium if the loan mod does not work out. They are not going to be mad at you, being the listing agen, they are going to be mad at Titanium and the HRC. They are going to take the dent in reputation and status.
This is really a time when I feel like we are all walking on egg shells trying to do our best, and help our communities, this will all work out as it is supposed to... If I did not feel that way I think I would just pull the covers back over my head one morning and just not get out of bed for a few months.. Instead I am building new web sites and helping some HUD Approved Housing Agencies.
One of the things about being an HRC, at least in So. Cal. for the time the assignments take and the gas money involved, this is not a profit driven thing. I find my money comes from Activity,, I may make the contact at the oddest place.. but its the activity.. Helping is by far the best of all activities that bring me money..
Hope you were able to convince them to re-list.
A terrible miscommunication; lender, homeowner, and a HRC that was not thinking....more or less you most likely will be hired again to re-list hopefullly in time to postpone a Sale Date.
Crazy time....yes Good Luck.
Good Luck
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