Love's Real Stories

Rubber Check Time

Here’s a man who says he lost his home to foreclosure, though he never failed to make a single payment to his bank.

“I was working overseas,” said Allen Coltin, “and to my surprise, my bank sent me foreclosure letters. I called them. I screamed. I had an attorney scream and write letters. They foreclosed and made me hit the road.”

Colton has been waiting for a promised settlement. “I can sue them, but these guys are playing with monopoly money.” He has not drawn the monopoly card that says “The bank has made a mistake in your favor.” More like: “Go directly to jail. Do not pass Go.”

In the meantime, the “Big Five” in the banking business (B of A, Wells Fargo, etc.) made a settlement with the Feds and the States to pay out billions of dollars to people who similar to Colton, were victims of “foreclosure abuse.” The payouts have begun, but sadly, and perhaps not surprisingly, some of the payout checks are bouncing like rubber balls.

The official word from the banks: “No comment.”

The official word from the consulting company hired by the Treasury Department to handle the payouts: “Our employees are not authorized to speak concerning this matter. Therefore, no further information is available through our office.”

The official word from the Treasury Department: “Take a hike,” (according to one of the rubber-check recipients).

Granted, this is a complicated business. After all, the settlement money is $3.6 billion; being paid out to 4.2 million people, in amounts ranging from $300.00 to $125,000.00. What’s the likelihood the right check will go the right person, bouncing or not?

Guess who got a check for $300.00? Allen Coltin. “And it bounced!” he screeched. “Mine was supposed to be $125,000.00! I lost my house! Gaaa!”

On the other hand, we find the lucky ones. Here’s a woman who pulled a good monopoly card: “I just got a check for $125,000.00,” she said. “I had no idea it would be that much. I knew I got jacked around by the bank, but this changes everything!”

Here’s a man who got a letter from his bank stating his entire home loan was forgiven because “Our institution has been made aware of errors in the transference of documentation regarding your mortgage.” The man remains nameless, and all he said is, “Shhh!” and very quietly, “Yeehaww.”

As for Allen Coltin, he’s still looking for that Get Out of Jail Free card.

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May 20, 2013

Restraining Order

Anita Neston needs a restraining order against her ex. Her ex-bank, that is. Anita and her bank parted ways last year, due to irreconcilable differences, resulting in a short sale of Anita’s house. The bank had displayed odd and sometimes abusive behavior during their relationship, but new stalking and harassment tactics began after their relationship officially terminated when the short sale closed. “The bank won’t leave me alone,” said Anita, “and nobody will help me. I’ve called everyone. I’m going absolutely crazy!”

Anita’s relationship with the bank began when she and her husband, Greg, built a new home in the Sierra Nevada foothills. The bank offered abundant money and favorable terms for financing. The home was beautiful- a little bigger than they originally envisioned- but the loan payment was right where they wanted it. Five years after the Nestons moved into their new home, they separated, and Anita couldn’t afford the payment on her own. Unfortunately, the real estate market had nose-dived, and the value of her home had dropped below the loan amount.

The bank began processing a loan modification, assuring Anita she would be approved, then changed gears and said her only option was a short sale. “The right hand didn’t know what the left hand was doing,” said Anita. “I filled out paperwork after paperwork for both a loan modification and a short sale.” Eventually, the short sale went through, and closed last December.

Then the harassment began. The bank began sending a relentless barrage of letters and packages to Anita at her old and new addresses, all to do with applying for a loan modification. “This is after I sold the house and moved!” says Anita. She gets phone calls demanding her to pick up packages and complete and return required documents. “The packages just keep coming; big fat things with lots of applications and forms. People tell me to just throw them away and ignore them,” she says, “but I get calls, too, one at 7:30 this morning for instance.”

Anita says the State Attorney General’s office told her the bank gets incentives for offering loan modifications. “So they’re sending all these packages to dead-ends. My Fed-Ex driver told me she delivers hundreds of these same packages all over the place,” said Anita. “She knows they are useless, but it’s her job to deliver.”

“It’s a waste of resources and wrong,” said Anita. “I wish others would speak up; maybe together we could do something about this!”

Anyone?

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May 1, 2013

No Brag, All Fact

“To hear you tell it, the real estate market has turned the corner for good,” said my old friend Double D.

I had just been thinking about old Double D, and amazingly, I called him that same day. It’s eerie how coincidences happen like that.

“I don’t know about for good,” I said, “but definitely for the better.”

Double D has been around the block a few times, and he knows a thing or two about turning corners. His next statement made me think he might have gone around the bend.

“Listen,” he said, “we probably have seven to ten years of good times ahead. You think I’m right?”

I looked into my crystal ball, and it was foggy. I reached for my Magic Eight-Ball, flipped it over, and saw words floating in the murky interior: It is certain.

“Sounds right to me,” I said.

“So houses are selling as fast as you’ve been bragging about lately?”

“Yep. All brag, no fact,” I said. “Wait. I mean… the other way around.”

“You mean no fact, all brag?”

“Yes. I mean, no. I mean…. Wait! Let me just tell you what’s going on, okay?”

“Okay,” said Double D. “Just asking.”

I untangled my tongue, and gave him the low-down:

The fact is, inventory is really low in the real estate market, and buyers are really high. In number, that is.

The fact is, when a property comes on the market, if at least two or three offers aren’t written within two or three days, something is wrong.

The fact is, interest rates are so low, everyone who could be a buyer should be a buyer, and more and more are realizing it every day.

The fact is, when demand is high, prices go higher, and eventually, so do interest rates.

“And,” said Double D, “when interest rates and prices go up, affordability goes down, knocking buyers out of the race. But like you said, the market has turned the corner for good.”

“Right. I mean, I did?”

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March 25, 2013

How to Buy a House

Get off the internet: Cruise online until your eyes turn red, but at some point you need to go outside, visit some houses, and use all of your senses. The pictures of a house online aren’t going to show you the neighbor with the eight dead cars and three snarling dogs. The pictures can’t convey the smell of carpet in a house with 5 cats and one over-used litter box. Through the portal of your computer monitor you can’t hear the traffic from the highway; the saw blades whining in the nearby shop; the “music” from the band practicing in the neighbor’s garage. You can’t feel the house shake when the train rolls by.

Get a good guide: Find a realtor who has their head in the game. A good realtor hears the juicy news, like a price reduction coming soon on a listed house; a new listing coming before it hits the market; a sale falling apart and therefore a house coming back on the market. A good realtor will share with you the private tidbits if you are a loyal client.

Look at property you don’t want: Get educated. That means looking at all the houses in your price range, including the dogs and the frogs. Houses that are priced right sell fast, so you’ll soon be able to recognize fair pricing. Drive by houses that have recently sold, too- your realtor can give you the details on them. That’s how you get a good picture of current value.

Get a pedigree: Find a loan officer who will do their homework and get you pre-approved for a loan. Get your pre-approval letter and show it off like a job applicant with a diploma. The offer you write on a house should include your pre-approval letter so the seller can see you’re a bonafide real-deal buyer.

Butter it up: You won’t have the opportunity to meet the seller when your offer is presented, so show them who you are. Put together your promo package like an actor auditioning for a part. Photos, bio, resume’, a letter to the seller expressing your heartfelt desire for their home, and all the reasons you deserve it. Sellers like to sell to people they like.

Move fast: When a house comes on the market that looks, smells, and feels right; and your expertise in your price range tells you the house is priced right- jump now! Your expertise might also tell you that five to ten other buyers are moving on it. If that’s the case- as it often will be in 2013- you’ll know you better offer full price. Or more.

It’s a tough job for a buyer in 2013, and it can be hard to know exactly which move to make from time to time, but you can at least make an educated guess.

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February 28, 2013

Sellers Have the Blues

Buyers are snapping up houses as fast as they hit the market, and sellers often have the luxury of picking and choosing among multiple offers. Home prices are moving up. Conditions such as these are generally referred to as a “seller’s market.” But sellers aren’t convinced their future is so bright, according to the 2012 California Home Sellers Survey by the California Association of Realtors.

The survey says only twenty per cent of California sellers believe home prices will rise in ten years. 12 per cent think prices will rise in the next five years, and only nine per cent believe prices will rise in a year.

Buyers have a completely different outlook. 73 per cent see prices rising in the next ten years; 41 per cent in the next five years; and 25 per cent in the next year.

So what’s with all the seller pessimism? The President of C.A.R., Don Faught, said, “In contrast to record high housing affordability and record low financing rates experienced by home buyers in 2012, the real estate market looked quite different from sellers’ perspectives. The last few years have been extremely difficult for many homeowners, which may indicate why more than twice as many sellers (74 percent) considered strategic default in 2012 than last year, reflecting homeowners’ hardships in a difficult economic environment.”

An Eeyore-type outlook among sellers is understandable. It’s been a rough six years of fallen prices, foreclosures, short sales, defaults, and as President Faught mentioned, “strategic default.” A strategic default could be called ”pre-meditated foreclosure” wherein a homeowner decides “I’m sick of throwing money at this depreciating asset of a house, the bank can have it. I’m taking a walk.” Not many homeowners actually did strategically default, but if 74% contemplated it, as President Faught says, we get a good picture of a bad situation.

The seller outlook might be glum, but you have to admit, things are looking up, or at least not down. Read the latest headlines, seller: “Home Prices in January Reach Levels Not Seen Since 2006”; “Home Sales Reach Highest Level in Four Years”; “Conditions Ripe for Further Price Appreciation in 2013.”

The seller’s life might not be a bowlful of cherries, and you might not be laughing all the way to the bank; but wait, is that a little smile I see?

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