Dear Wells Fargo... Congratulations! You Bought a House for $8,000 less than offered!

By
Real Estate Agent with Henderson, Thornton, Broomfield and Westminster 100026886
http://actvra.in/r27

 

Dear Wells Fargo,

illustration of house in chains


Congratulations!  You've bought a house!  I know you are going to be very happy there.  The schools in the area have a great reputation.  What's more, there is a community pool, tennis courts, and an extensive trail system throughout the area's lakes and open space.  

Even though you have never seen the house or been inside - in fact, you aren't even in Colorado - I know that you will appreciate the 5 bedrooms and 4 baths.  The basement is set up perfectly for out of town guests, with its full bedroom and bath and large rec room.  I'm sure you will have a lot of visitors who will want to take advantage of your hospitality, so you'd better make sure you have plenty of towels!

And what a wise choice you have made, declining the short sale offer that was $8,000 more than what you have declared to be the opening bid at the foreclosure auction.  So shrewd.  I'm certain that the legal fees and holding costs and loss you are taking on the original loan are much, much less than that.  What an excellent business decision!

Plus, this house has so much room!  Not to mention a 3 car garage and large yard with a brick patio.  Oh, Wells - may I call you Wells? - imagine the warm summer days you will spend on the patio barbeque-ing with your friends.  Will you invite Bank of America?  And Citigroup?  And Chase?  

Enjoy your new home!  I can only imagine that when you saw this beauty come up in your loss mitigation files, you could hardly wait to move in.  Why else would you force this foreclosure auction when there is a valid offer in the works?  You knew the sellers were in dire straits when you got their hardship letter.  Loss of income?  Pish!  Terminal Cancer?  Tosh!  You wanted this house, and - by golly! - you got it.

Nice job.  Have fun at the auction!  Oh- and don't forget that you need to bring certified funds for the full amount of your winning bid.

Sincerely,

Jennifer

winking smiley face

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Re-Blogged 14 times:

Re-Blogged By Re-Blogged At
  1. The Elise Weber Team 01/10/2012 12:16 PM
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  12. Michelle Carr-Crowe-Selling Silicon Valley Homes in Top Schools San Jose, Cupertino, Saratoga, Palo Alto-Just Call 408-252-8900 01/12/2012 02:13 AM
  13. Ruth Jones 09/07/2012 11:41 AM
  14. Lyn Sims 09/07/2012 11:54 AM
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Tags:
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Rainer
14,469
John Turner
Bob Parks Realty - Nashville, Murfreesboro, Smyrna, Tennesse - Murfreesboro, TN

I don't understand them sometimes. I bought a short-sale a couple years ago. We made an offer and the bank counteroffered us for $2,000 LESS than what we offered. It made no sense but I appreciated the extra $2,000 in my pocket.

Jan 11, 2012 09:45 PM #146
Rainmaker
281,342
Steven Pahl
Keller Williams Tampa Properties - Tampa, FL
Real Estate Consultant Tampa, FL 813-319-6423

So this is what I am up against now that I have started my first SS with "Wells", have done numerous others, but this is the first with them.

Jan 11, 2012 10:33 PM #147
Rainer
59,565
Dianne McNeill
Orinda, CA

OMG!! Absolutely fantastic. You have made my day:) When all is said and done and this chaos has levelled out we will look back on these times and clearly wonder how we survived them. Thank goodness for humor! At the end of the day we still have our smiles:) Thank you.

Jan 12, 2012 12:12 AM #148
Ambassador
1,139,735
Michelle Carr-Crowe-Selling Silicon Valley Homes in Top Schools San Jose, Cupertino, Saratoga, Palo Alto-Just Call 408-252-8900
Just Call (408) 252-8900! - San Jose, CA
Family Helping Families Buy & Sell Homes 40+ Years

I can see WF BBQing now - burning their extra cash as fuel, obviously.

Jan 12, 2012 01:51 AM #149
Rainer
31,241
Kim Waldron
Best View Imaging - Millbury, MA

I realize that your story is true and that there are many players other than well fargo but this is all such a sad state of affairs initially started by some silly people that thought trading mortgages based on the chance that they would fail or succeed was a good/ethical idea

Jan 12, 2012 02:58 AM #150
Rainmaker
640,654
Stephanie/Bob The Ruiz/Miller Team
Keller Williams Cornerstone Realty - Ocala, FL
The Ocala Dream Team

Hi Jennifer, Too funny!  I had Wells do the same thing and the same buyer got it in better condition for ~$20k less!

Jan 12, 2012 06:07 AM #151
Rainmaker
363,738
Sylvie Stuart
Keller Williams Check Realty 928-600-2765 - Flagstaff, AZ
Home Buying, Home Selling and Investment - Flagstaff, AZ
I love the creativity and angle for this one! It's maddening how many times we see the scenario where it will definitely cost them more to foreclose than to just take an offer a little less than what they are wanting.
Jan 12, 2012 08:26 AM #152
Rainmaker
281,353
Michael Collins
*ROCK REALTY|Broker|Realtor|Real Estate|WI Short Sale Agent* - Janesville, WI
CDPE, SFR , Wisconsin Short Sale Specialist Realto

Hi Jennifer,

I'd be happy to start a group if you think it would catch on! At this point, just need a name for it. Suggestions?

  • The Bank Screwed my Short Sale Sellers
  • Foreclosed on my Sellers
  • The Bank did WHAT?
  • Loss Mitigation Bloopers
  • What are these Banks Thinking??!
Jan 12, 2012 09:44 AM #153
Rainmaker
281,353
Michael Collins
*ROCK REALTY|Broker|Realtor|Real Estate|WI Short Sale Agent* - Janesville, WI
CDPE, SFR , Wisconsin Short Sale Specialist Realto

It's still early in the morning, so those are the only names that quickly came to mind. I'm sure someone can come up with something more catchy :)

Jan 12, 2012 09:45 AM #154
Rainer
84,951
Jamie King
Hoty Enterprises, Inc. - Huron, OH
Sandusky, OH

Jennifer...I feel your pain. Had a very similar situation with Wells Fargo in the past. Offer was for $110,000 before the home went to Sheriff Sale. Seven months later, after the expense of foreclosure, carrying the utility cost, taxes, insurance, snow removal,etc. The home sold for $108,000!???!!

There is no logic in this whatsoever!!!

Jan 12, 2012 11:09 AM #155
Rainmaker
280,101
Marnie Matarese
J Wood Realty - Sarasota, FL
Showing you the best of Sarasota!

Fabulous post.  I am so tired of trying to explain to my buyers why the short sale they offered on is now bank on the market as a bank-owned at a significantly lower asking price than the one they offered 8 months ago.  There has to be a method to the banks madness and i think it centers on all the money they are making in their litigation branches.  A pox on them all!  (except BB&T who has been very easy for me to work with.)

Jan 12, 2012 12:30 PM #156
Rainer
58,926
Scot Draper
RE/MAX Executive Realty - Charlotte, NC
Broker/Realtor, ABR CDPE CIAS

Great post! I love the humor ... but we all need to have that when dealing with the banks on these short sales. They tell us they are improving their systems to better handle this but, unfortunately we are not seeing improvement. Regression is more like it.

Jan 12, 2012 04:32 PM #157
Rainmaker
332,971
Judy Jennings
508-209-5000 - Plymouth, MA
Sales Director

Jennifer - How pathetically funny is this post?! I don't know whether to laugh or cry at the absurdity of it all. <sigh>

Jan 12, 2012 04:38 PM #158
Rainer
6,219
Chris Weymouth
The Weymouth Group at Keller Williams - Ellicott City, MD

I just wrote a blog that might answer 90% of the questions asked here as to "WHY??" banks did what they did as described by Jennifer -  http://theweymouthgroup.com/2012/01/12/some-think-banks-are-dumb-yea-dumb-as-a-fox/ 

How many of you remember when banks wanted to get into real estate and start brokerages but were beaten back by NAR? Beyond the obvious reasons, the main reason one is this: Next time you read in the remarks of the MLS listing of a REO property, pay special attention to: ALL BUYERS MUST BE QUALIFIED THROUGH (name of bank here), then it will sink in.

Jan 12, 2012 08:14 PM #159
Rainmaker
174,235
M.C. Dwyer
Century 21 Showcase REALTORs - Felton, CA
Santa Cruz Mountains Property Specialist

Hi Jennifer and thanks for taking time to write a great story about what appears to be the irrationality of banks with regards to foreclosing despite valid and higher net value short sale offers.    It's so hard to explain to people why this continues to happen.    Certainly a waste of everyone's time and energy, and a drain on the lives and emotions of the sellers and buyers.

$8,000 less is actually a smaller number in my experience; I ran into it several years back with Wells when we had a short sale offer in escrow that was closer to $20,000 above what they ended up selling the house  for after foreclosure.

At the risk of repeating myself, there are hidden economic incentives that these lenders can take advantage of behind the scenes.    It makes their actions appear to defy logic, but in the end banks are pure capitalists.   Plus there are oftenand "GSE"s and "investors" kept hidden behind the curtain, whose motives vary too.  

I am proud of those who put the effort in to "occupy Wall Street" - but it seems to me there needs to be "occupy Capitol Hill" too.    Our government is deeply entrenched with the lobbyists and buinesses seeking advantages for themselves.     It's a systemic problem, and I don't see a way out of it.    

But thanks again for telling the story in the way you did...looks like people are distributing it widely - which has to help.

Jan 13, 2012 01:23 PM #160
Rainmaker
205,571
Erby Crofutt
B4 U Close Home Inspections&Radon Testing (www.b4uclose.com) - Lexington, KY
The Central Kentucky Home Inspector, Lexington KY

Jennifer, just in case you hadn't noticed:  Your sarcasm is dripping.

Some sad humor there.

I'm sure there are hidden economic incentives for the banks somewhere!

Jan 14, 2012 06:22 AM #161
Rainer
10,120
Glenn Ashby
Century 21 Partners - Owensboro, KY
Your Full Time, Full Service Real Estate Solution
Rock Realty, How about "We had to blow that MIP and Tarp Money somewhere".
Jan 14, 2012 02:46 PM #162
Rainer
31,235
Joseph Holbrook
Keller Williams Realty - Reston, VA
CDPE(Dulles Area 703-651-9169)

Not surprising and will continue to happen likely unless the incentive for working with people cost them less than not working with people.

  Why should the big banks sell to someone when you can probably get some welfare payments from the government or insurance/guarantee to cover some costs and play a gamble.

Or for that matter that expert appraiser that was the lowest bidder and had to call you for dam directions tells the bank its worth this amount and then you find out this appraiser came from 120 miles away.LOL:)

Also, I think the BPO process is flawed but what do I know.  Pay someone like $50.00 who is actually local and they give the banks the more appropriate realistic price. Then they give the listing to some other company that is a buddy of a sister in law who lives 70 miles away.  

  Just like the "Shadow Inventory" I believe there has to be "Shadow Insurance" for the banks.  It's there hidden in some mysterious form but no one wants to talk about or admit it I believe and assume.  

Jan 14, 2012 03:41 PM #163
Rainmaker
130,309
Matt Robinson
Professional Investors Guild - Pensacola, FL
www.professionalinvestorsguild.com

Wow, only $8,000 less?  I've seen them foreclose on my short sales and end up taking tens of thousands less...and end up holding it for months longer. 

Aug 10, 2012 10:58 AM #164
Rainmaker
428,586
Mike Young
203kOnLine.com, covering California & most other states - Fairfield, CA
FHA 203k Consultant 707-812-7668

I love it. WE had one turned down on a counter offer only to see the bank listed it for less than our offer just a week later, the same buyer made another offer a few thousand less and they accepted the offer. Not Wells Fargo however.

Lets see, we make an offer, discover some really bad stuff is going on, disclosed it with a lower offer to cover it, they turn it down, and then list it for less than our offer a week later, and were willing to let us negotiate a bit lower after refusing to negotiate and sell faster a week earlier. There is just no rhyme or reason. I think it must be personalities. 

I had a seller's agent visit me at my inspection telling me the negotiations have already been done on another property, then I found misrepresentation in his listing. When we counter offered lower, he didn't even ask the seller, he just dropped the price and sold the home. I guess he did have the power to negotiate when it was his error. lol

Sep 03, 2012 12:08 PM #165
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Rainmaker
337,783

Jennifer Prestwich

Your Castle RE Colorado
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