Yes – they did. We had a short sale client that came to Paris and I needing to be released from their contract with regard to their short sale, so they could have start the loan modification process.
I saw the flyer they had been mailed and it even talked about giving them 120K in the form of a principal reduction. I thought to myself, “Boy, these banks are really getting it together.”
We had a sit down with our clients about their home in Valencia CA – the one that was being marketed, by my Paris911 short sale team, as a short sale. The same home we had spent hours and hours on the phone talking with the first lien holder. We reviewed the letter and gave our clients the questions to ask. When they got back to us, they wanted to cancel the listing and go forward with the loan modification and principal reduction.
Both Paris and I were all for it, if they can keep their home, why shouldn’t they? If their bank was willing to support them and work outside of the box to help them – we need to be supportive. What the client wants, the client gets…
We did, however, explain that we have seen that sometimes, during a loan modification, the bank sells the home at the auction via a Trustee’s Sale. Sometimes, not all of the time, so keep watching the process and when the sale date is getting closer, make sure you have names of those at your bank that are telling you the home is okay and they aren’t going to sell it out from under you!!!!
With all of the “verifying” and “checking in” with their bank, during the loan modification process – the home was sadly sold at the auction. After that point, our clients were not able to speak with anyone at the bank except those that said, “Sorry, it happens, you knew the risks associated with having your loan modified…” – Apparently some of the banks, or those working at the banks, do not care about reputation or helping people.
I was flabbergasted – It was a sad day indeed. This has now happened twice to direct Short Sale Clients of ours. We tell them the same things, “Watch out, make sure they don’t sell your home at auction, get names, numbers and keep on the bank to make sure they don’t sell your home out from under you!!!”
Even with all of these double checks in place – they still do. Be careful, some of the loan modifications work out for the betterment of the clients position. Some – but most are seemingly a “hard core” game that leaves the client homeless, before they would have been with a short sale.
If you want more information about Santa Clarita short sales and our Short Sale team, reach out to Paris911 at REMAX of Valencia. We are available on-line by chat, text, email and by telephone.