Okay, so your tax dollars have gone to help out financial institutions who made bad loans an art. So how are they using federal funds to loosen the credit market and make housing easier to obtain?
Wachovia’s Stupid Stip
I had a buyer that wanted to buy a house, bank owned house that is, from Wachovia. Priced at $219,900 the actual value is probably around $245,000. My buyers anxious to make an offer came to a sudden stop when I read to them a stip in the corporate addenda that I’d never seen before. Seems Wachovia has decided that the buyers must put down a 5% earnest money deposit that is totally and completely nonrefundable. Inspection out? No. Financing fall through because you lose your job before closing? Too bad. They want the buyers to take an approximately $11,000 gamble to buy the house. It’s a pretty good bet they could/would close. But seriously… That was five weeks ago. Guess what. The house is still on the market.
HomEq Loan Servicing Corp’s Stupid Stip
Yesterday I inquired about a short sale home that is in the redemption period in Kansas. Needs about $45,000 worth of repairs but perfect for these young, energetic first time home buyers. After they buy the house and make the repairs they’ll be up some serious equity. But wait. Before HomEq will even look at an offer they require a certified appraisal paid for by the buyers! Oh, and there are no guarantees they will negotiate with you, meet your offer or even accept the certified appraisal!
Countrywide Home Loans’ Stupid Actions
I have had a short sale seller for the past few months. Countrywide sent me a letter stating what they would take. I’ve sent them three (that’s 3!) offers within a very reasonable pricing window and all three offers have been completely ignored. No response. Repeated phone calls, emails and letters unanswered. Calls to supervisor? Hah! I finally pulled my sign and told the very upset seller I’ve had it and sorry they had to deal with Countrywide because I was done wasting my time.
Can somebody please tell me why we should save these banks? Is this how capitalism rewards the slothful and inept? I thought capitalism was supposed to let these people fail and someone that can operate a business would pick up the pieces for pennies on the dollar and be rewarded. Jeff Brown, you are being called out here. You like to tell me there is a greater good. Where is it? 😉