Comments on: Wrong On So Many Levels

By: Banks Pull More Nonsense

Banks Pull More Nonsense — Tue, 02 Feb 2010 16:18:38 +0000

[...] doesn’t top some of the other nonsense we’ve discovered banks pulling, but it’s pretty [...]

By: Avi Mia

Avi Mia — Tue, 29 Sep 2009 18:17:54 +0000

Going through the “purchasing an REO property” process right now and will be back to add to this post as the series of misfortunate events continue to unfold (which will be followed by plenty of legal filings, complaints and the like). Will look forward to you experts input as we move forward with it. You all will be drop-jaw shocked at the stuff we went through. Want a little teaser: How about being a very highly-qualified buyer… yet still being required to meet two pages (over 30 line items in all) “conditions”. Oh wait.. want one even better? How about the property has no flooring in the Living Room. We knew that at first look and were thrilled as were willing to pay for our OWN flooring after close (wanted either designed and stained concrete or hardwood). Wanna know what they came up with that one? Mortgage company said “Nope. The Loan Investor is requiring flooring. Oh, but we won’t pay for it. Oh.. and you’re not allowed in the house to put it in even if you are willing to pay for it”. Requesting to leave it “as is” since we wanted stained concrete/hardwood, their response was: “No, you MUST have carpeting”. EXCUSE ME???? Hmm.. lemme see, if I was purchasing one of these $5million dollar homes, I’ll bet not a word-one would have come about the flooring. BUT NO… we got some person REQUIRING I put carpeting in! REALLY??? Hmmm… borders on practice in fair lending (possibly based on familial status and/or unreasonable lending requirements) discrimination if you ask me. As I said, will be back later for more tasty treats you folks will enjoy as this unfolds. In the mean time, I now have to go buy an appliance to keep the LENDER’s new CARPET vacuumed. It’s on baby… it’s on.

comment by site authors: this actually sounds fairly typical, believe it or not and is not a fair lending violation. There are Fair Housing violations but no such thing as a Fair Lending violation. Simply put, the investors who give money to banks/lenders to loan out in the form of mortgages are getting pickier by the day. Our “highly qualified” buyers are the ones having the most difficulty, appropriate flooring is very often required, and no, the buyer cannot make improvements to the home before the purchase is complete. In this case, if the selling bank won’t put in the carpet, and the lender funding the buyer’s mortgage requires carpet, this deal may die. Sounds like nonsense but we’re living through the age of the New Golden Rule: he who has the gold makes the rules. Most sad of all, this buyer sounds surprised. But if the buyer and his/her Realtor are really communicating, none of this would have been a surprise. Buyers, interview several Realtors carefully before hiring one.

By: Tiffany Cloud

Tiffany Cloud — Sun, 20 Sep 2009 20:20:52 +0000

Thanks for raising the alarm about this. I always read those addendums and spell out the risk to my buyers (comparing the bank addendums to the provisions we have in our amazing AAR contract – the contrast is startling) and over half of them opt not to even look at bank-owned homes after the risk are actually explained to them. Notwithstanding the ridiculous terms of the banks addendums, the buyer is depositing earnest money and paying for inspections on a ‘good faith’ verbal agreement from the bank. ["good faith' and bank...isn't that an oxymoron?] Thanks again for raising the bar of our profession.

By: Can the Buyer cancel and receive a refund of the $1,000 earnest money? : Arizona Real Estate

Sat, 19 Sep 2009 01:55:13 +0000

[...] – If everyone had a Realtor as good as Heather Barr there wouldn’t be any sadder but wiser home [...]

By: Laura Rubinchuk

Laura Rubinchuk — Fri, 18 Sep 2009 23:03:46 +0000

Heather,

I’ve seen some ridiculous bank addenda too, however, this BY FAR takes the cake. We’ve had some where entire sections aren’t even legal in the state of Virginia.

Keep up the good work – sounds like you do a great job protecting your clients!
Laura

By: Phoenix Real Estate | Phoenix Homes for Sale | All Phoenix Real Estate | Buying REOs on Your Own is Much Like Swimming in the Atlantic in a Chum Slathered Suit

Fri, 18 Sep 2009 21:39:15 +0000

[...] represents the seller in the transaction … the lender … not you. So when you receive a piece of dreck like this one from a lender as merciless as the fine folks at Huntington National Bank, you’re completely [...]

By: Doug Francis

Doug Francis — Fri, 18 Sep 2009 20:20:08 +0000

Perfect. Just wait until the next foreclosure wave hits… maybe that’s why they have prepared such sinister language. I’m sure they all had a big laugh when they added “earnest money is non-refundable for any reason” thinking most people are too stupid to understand the consequences.

That lag time between verbal acceptance and bank signature (10 bank days) has been enough time for my clients to have a home inspection and make a final decision to turn tail and run or not. So, I have seen this too from other banks…

By: Colin Stevens

Colin Stevens — Fri, 18 Sep 2009 16:41:39 +0000

wow…I can’t believe my eyes! I’ve never seen a bank addendum THAT harsh before. What’s the next step? ONLY cash offers, no appraisal contingency, close in 5 days, no inspection period?

By: Huntington National Bank: Are you freaking kidding me? From deep with the WTF files — The Phoenix Real Estate Guy

Fri, 18 Sep 2009 14:22:06 +0000

[...] Go read Heather’s Barr article on ThePhoenixAgents.com, Wrong on So Many Levels. [...]

By: Top 5 real estate posts of the day for 9/18/2009

Top 5 real estate posts of the day for 9/18/2009 — Fri, 18 Sep 2009 13:43:00 +0000

[...] Wrong on so many levels – If you are an agent who deals with buyers and foreclosures you need to read this. If this [...]

By: Jay Thompson

Jay Thompson — Fri, 18 Sep 2009 13:32:57 +0000

This is criminal.

How many people just sign away on things like this, without ever reading it?

THe answer I fear, is a lot.