An amazing thing happened to a client of mine last week. We had been working with this customer for quite some time to help them improve their credit score, save a downpayment, pay off some debt that was a problem and put them in a position to buy. After that we introduced them to their Realtor and sent them shopping.
Once they found a house I found out exactly how dirty the banks can play. They found a great foreclosed property. The bank, I am sure was losing thousands after having to take it back. Between the missed payments, the cost to hold an empty house, repairs, legal fees etc. they surely lost a boatload. To recover this, they insisted that the customer get the mortgage from them or they would not accept the contract for purchase. This included a higher rate and more fees than we were going to charge for the same work.
So in addition to foreclosing on homes when they are not allowed, ignoring calls for loan modification from both customers and the government and taking enough time on short sales to kill transactions and potentially save families from credit damage, foreclosure and other devastation we now have this.
On the bright side, our customer told them to pound sand and though they did not get that house, they are closing on a different one this week. At the same time they feel they are getting a better deal on this one.
The big banks just can’t seem to get out of their own way.
