Short Sales Who Gets the Key or to Re-key??

By
Real Estate Agent with Long Realty West Valley Sun City Grand Surprise Arizona

Earlier this week I was showing a client short sale properties in Surprise listed on Arizona Multiple Listing Service.  At a specific property the key in the combination lockbox did not open the front door and there was a new deadbolt lock.  I called the listing agent to tell him that the home was obviously re-keyed.Who Gets to Re-Key?

According to the listing agent, banks are re-keying vacant short-sale properties to winterize them.  Evidently this is a procedure banks are doing in order to protect the property.  WithinProtecting Your Assets a few hours, the listing agent had the locks re-keyed a second time.

The trustee sale on this property is scheduled for February.  Although the judicial system has not given the bank the title to the property yet, does the bank have a right to exclude the homeowner from re-entering the property once it is vacated? 

Do homeowners relinquish their rights to access their home once it appears vacant and the mortgage is delinquent?   

Do agents have a right to change locks on a short sale property that has not yet been foreclosed upon? 

What do you leagal eagle agents think about the legality of these practices?

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Re-Bloggged 2 times:

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  1. Shannon Coe 01/02/2011 09:33 PM
  2. Eva Erdmann 01/03/2011 11:06 AM
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Topic:
Lending / Financial
Groups:
Active Rain Newbies
Diary of a Realtor
Realtors®
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"Whacked"!!!
Tags:
short sales

Comments 129 New Comment

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Rainmaker
260,368
Wayne B. Pruner
Tigard Oregon Homes for Sale, Realtor, GRI
Oregon First

In Oregon you can't lock someone out of their home without a judicial action. The fact of the matter is that once someone vacates the home, they don't care.

January 22, 2011 02:49 PM
Anonymous
Anonymous

The bank has a right to protect its assets but it's not theirs YET!

So, they should strictly be dealing with a Realtor to get the property listed and if there are any changes that need to be made it should all be through the   LA. But, that really makes too much sense so most of them don't do it.

Geeez! If the banks could get their act together think of all the issues that would no longer exist.  <smile>

p.s. FNMA is doing really good in our area.  They've really tightened their ship! Come on Banks!  :-)

                                                           

March 25, 2011 01:39 PM
Anonymous
Chris

Can i just say i love the conversation going on here... i work for banks "rekeying" properties and winterizing them. We do everything from debris removal to lock changes to winterizations.. We work for BAC, GMAC, Wells Fargo, etc..

First off us as contractors are told very very little about the property. We are told to leave if there is personal belongings in the house...

It is funny that everyone is attacking the bank for preserving the house but yet when we (preservation contractors) dont show up on time in February and the entire heating system freezes and floods out the house we are to blame.

This has happened to me firsthand. There was a property for sale by realtor. We were sent by the bank to winterize the home, i called the listing agent 3 times with no response at all. We reported this to the bank, a week later the bank sent a Work order stating do not contact realtor and go in the back door and winterize. Well when we got in the street main had frooze and burst and the property had 6' of water in the basement. I called the bank, they told me call the realtor and leave message. Funny how this time he called back, but it was too late. Then the realtor accused me and my company of not winterizing in time and actually tried to file suit against my company. Luckily the bank stepped in and he backed off.

In my day to day realtors NEVER call us back, or we call and they threaten us, call the police (who by the way allow us access into the property)..

I just wanted to tell the other side, my opinion.. I don't say any of this to start arguments or to get yelled at, just my .02

Thank you,

Chris

May 08, 2012 02:38 PM
Anonymous
Chris

one more story as i can not resist...

 

went to a property that was "cared for" by real estate agent...

 

walked in to 4 dead cats, cockroaches throughout home, fridge FULL of food (i guess you could call it food by the time we got there...) more like maggots with a trace of food..

this said property we tried to access 6 times but every time the real estate agent maintained he was "caring" for the property.

we then had the glorious job of cleaning out the house...

 

ps- i have 2 cats and 1 dog from homes where the people left them behind... left notes in the home, its been a year, funny noone hasclaimed there furry friends

May 08, 2012 02:42 PM
Rainmaker
589,336
Sun City Grand Homes Surprise AZ Real Estate Leolinda Bowers
Associate Broker Realtor Arizona Golf Communities
Long Realty West Valley Sun City Grand Surprise Arizona

Chris, it's concerning to hear that the la is non-responsive to your phone calls. This should be reported to the bank. I don't list foreclosures or short sales but show many of these properties. I too experience similar non-contact from the la.

Regarding pets, I once tried to get into a short sale property but couldn't since the key was not in the lockbox. I could hear the dog barking inside. I called the la, no return call. Two days later the la called me and told me that a new key was being placed in the lockbox. I arrived at the property the same time as the la, only to find the dog had not survived. Sad.

Thank you for stopping by, your comments are appreciated.

May 09, 2012 09:29 PM
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Rainmaker
589,336

Sun City Grand Homes Surprise AZ Real Estate Leolinda Bowers

Associate Broker Realtor Arizona Golf Communities
Considering an Arizona Winter Home?
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Additional Information

Specializing in real estate and homes for sale in

Phoenix AZ Retirement Communities

Arizona Traditions

Corte Bella

Pebble Creek

Sun City Festival

Sun City Grand

Sun City West

Trilogy at Vistancia

Westbrook Village

At http://LEOLINDA.com buyers and sellers can search homes for sale, find floor plans, research homes sold, see foreclosures and short sales in Phoenix AZ Retirement Communities

Leolinda Bowers is an Associate Broker at Long Realty West Valley. Long Realty is a part of Home Services of America, a Berkshire Hathaway affiliate.

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