ARE THE BANKS DOING ENOUGH??

One of the largest and most beautiful homes in Rowley is located in the most desirable location of this precious town. About one year ago the owners called me and asked that I assist them in the sale of their most valuable asset .Their many children had filled the rooms with love and laughter for most of the several years they had lived in the home that they built, but the laughter stopped when an impossible interest only second loan came due and the value of their property plummeted as the rate rose.
Several Real Estate agents before me had tried to sell the property, but the market was dropping at a faster rate than the home was reducing in asking price. It languished on the market as a result until it grew cold as over priced properties always do.
By the time I listed the property, the banks were closing in on a family whose credit had been pristine throughout their lives. They were now facing bankruptcy and foreclosure with a home full of children and an elderly family member. The large family found themselves with no where to go.
While the property remained on the downsizing market, another family had visited the home, loved it, and had been monitoring the price. They hoped against hope that the property would reduce to within their price range. It did. This family, who also had several small children, put their home on the market for the sole purpose of purchasing the big beautiful home they loved. They priced their home for less than they had hoped to realize, but they knew they would have to price aggressively to sell it in order to move on to the home of their dreams. Their strategy worked. Ecstatic, they began packing for a closing the following month.
In order to pass ownership of a property from one family to another, there must be clear title, that is, no liens or other claims may exist on the property. When there are two mortgages (liens), there are often two different banks involved and each bank must release the lien it holds on the property. If the lien is not voluntarily released, it is either paid in full, or the bank agrees to accept a lower payout. The lower price agreement is called “short sale”.
Although both families were represented by competent Realtors, and Attorneys, all parties and professionals were caught in the sticky web between huge banks whose combined liens exceeded the value of the home by close to a quarter million dollars. After countless communications with the second bank whose lien had been discharged by the Bankruptcy Court, the sellers, Realtor and closing Attorney had all been told by the “decision maker” that the releasing of the lien had “passed all levels of approval” and the last approval, from the “investor” should be “emailed by 5pm.” It never came.
Months of impossible complications with the banks passed as both families moved into rentals with the hardship and disappointment that was palpable within the walls. The second bank “decision maker” could not find the file and none of the many bank representatives including management personnel could recall the representations made to the family, the Realtor or the Attorney. Moreover, the bank itself was “downsizing” and hundreds of employees were “let go”.
The heartbroken family whose purchase of the big home would have saved the other devastated family from foreclosure and further damage to their credit had no choice but to withdraw from the transaction.
Almost half a year had passed since the time when two banks could have agreed to a plan whereby everyone would have benefited had everyone given something to make it work for all.
As I write, the aggrieved seller, Mother of five, with an indomitable spirit, responded to an ad about foreclosures that she saw from one of our Senator’s Office this week. She hopes that by sharing the financial and emotional nightmare that she experienced first hand with bank incompetence and indifference, another family may fair better than hers.
After hearing her story, the Senator’s Office called for the file on this big and beautiful Rowley home. He will not like what he sees has happened to these two lovely families for no good reason. As difficult as it has been to witness such indifference to the clients we grow so close to, I would much rather be the Realtor than the bank right now. This young Mother is a force to be reckoned with and the Senator’s Office, I suspect, is a mere starting point.