Banks are at a standstill in the foreclosure process, delaying the inevitable on some cases and hopefully saving some fortunate homeowners in other circumstances. A simple missed payment can get logged into the books incorrectly with the result of the family getting hyper sped into the foreclosure drama with the bank refusing to accept payment.
There's a local case here in Ventura County where the family has refused to accept the bank's unloading of their property to a local LLC that in turn sold it to a buyer who has already performed upgrades and remodeling. The original homeowner has changed the locks and has moved back in, all while the local authorities watched. It's this family's contention that the bank stated they were behind $25,000 when the amount was really less. In an effort to keep the home, the owners made a payment of $10,000, thinking they were bringing it above what was truly owed. The bank stood by the $25,000 demand and foreclosed.
Let's face it, folks, we are in troubled times and the machine is only as good as the sum total of its people and systems. You get what you pay for and get what you demand of your employees. So much media attention has been delegated to what has gone wrong in the recent events of the real estate crises. What we are seeing is the epitome of a system gone wrong and its players running amok.
I enjoyed a guest speaker at my weekly sales meeting who is from a title company and tried to shed some much needed light on this important subject, yet not all questions could be adequately answered because we have no answers. I myself asked this gentleman if the banks were still serving the standard notice of default on delinquent notes; he had no idea. I suppose it's up to the individual lender and their practices, but it would be nice to be able to inform my clients that they can breathe until it's straightened out or that the process will continue on schedule, merely placing the homeowner in line to prepare for foreclosure after the dust settles.
I'm uncertain as to how the lenders will be able to straighten out this mess in a timely manner without hiring additional and professional staff. Anyone here think that the big boss bonuses might be put on the back burner?
While this situation will not be ironed out overnight, I still believe that any distressed seller is best prepared by meeting with a real estate professional who can create a solid game plan in preparation for when the lenders start foreclosing again.