Residential Real Estate Agent · Costa Mesa, CA · Member since 2008 · 1k+ posts · 380 votes
17y
As a buyer's agent (retail...don't moderate me Josh!) almost strictly for REO, I've seen a lot of different banks, and to be honest its really more about the asset manager and the listing agent than it is the bank themselves.
However...
I did have my commission changed via white out during escrow one time. Purchase agreement, Cooperating Broker Commission Form, and MLS Listing (both active and pending) all said I was to make a 5% commission. Then when I get the signed purchase contract back from the bank (EMC...they are just brutal on response time and organization), it had been changed to 4% (in different handwriting).
Not that I would ordinarily complain about a 4% commish... but the principle of whiting it out and changing it really rubbed me the wrong way.
Lender · Omaha, NE · Member since 2008 · 1k+ posts · 1k+ votes
17y
Here goes:
- They go well past the purchase agreement deadline 4 times during the offer negotiation process.
- They have the listing agent call me the day before closing date to tell me they were all set for closing, then confirming again on the day of closing.
- I show up at closing only to find out that we can't close because the title paperwork was screwed up. Meanwhile I have already switched utilities, insurance, etc. over into my name.
- Two more weeks go by and they still can't tell me when we can close.
- Meanwhile my carrying costs are accruing from the private money loan.
- They actually have the nerve to try and enforce the $100/day penalty for not closing on the agreed upon date even though it had nothing to do with my ability to close.
- I finally get pissed enough that I cancel the contract telling them that the only way I will buy it now is with conventional financing and for $5K less than what we had originally agreed upon (my private lender was a family member who was growing increasingly nervous with the situation).
- They have the listing agent call me a week later at 2:00 in the afternoon saying that they will accept my offer only if I close that day (which I obviously couldn't with conventional financing).
- I say, "Pound sand!" and mentally divorce myself from the deal.
- They call back two weeks later and say they will accept my revised offer.
- I finally go to closing a month later.
- Total time from initial offer to closing... 4 months.
Long story longer, I guess it ended up pretty well since I saved $5K on the deal, but I was so frustrated by the end of it that I almost didn't do the deal out of principle.
Residential Real Estate Agent · Costa Mesa, CA · Member since 2008 · 1k+ posts · 380 votes
17y
As a buyer's agent (retail...don't moderate me Josh!) almost strictly for REO, I've seen a lot of different banks, and to be honest its really more about the asset manager and the listing agent than it is the bank themselves.
However...
I did have my commission changed via white out during escrow one time. Purchase agreement, Cooperating Broker Commission Form, and MLS Listing (both active and pending) all said I was to make a 5% commission. Then when I get the signed purchase contract back from the bank (EMC...they are just brutal on response time and organization), it had been changed to 4% (in different handwriting).
Not that I would ordinarily complain about a 4% commish... but the principle of whiting it out and changing it really rubbed me the wrong way.
Real Estate Investor · Jacksonville, FL · Member since 2008 · 20 posts · 7 votes
17y
Fannie Mae!!!! They put a deed restriction that does not allow you sell the property for more than 120% of the purchase price within 90 days OR mortgage the property for more than 120% of the purchase price within 90 days of the deed. I guess they just want the REOs to look like crap and bring down the neighborhood, also nevermind the factor that someone might need the mortgage $$$ to rehab it!!! This is proof they discriminate!!! If the gov't can't have it...nobody can!!!
Scottsdale, AZ · Member since 2008 · 342 posts · 15 votes
17y
Originally posted by Owen Dashner:
Here goes:
- They go well past the purchase agreement deadline 4 times during the offer negotiation process.
- They have the listing agent call me the day before closing date to tell me they were all set for closing, then confirming again on the day of closing.
- I show up at closing only to find out that we can't close because the title paperwork was screwed up. Meanwhile I have already switched utilities, insurance, etc. over into my name.
- Two more weeks go by and they still can't tell me when we can close.
- Meanwhile my carrying costs are accruing from the private money loan.
- They actually have the nerve to try and enforce the $100/day penalty for not closing on the agreed upon date even though it had nothing to do with my ability to close.
- I finally get pissed enough that I cancel the contract telling them that the only way I will buy it now is with conventional financing and for $5K less than what we had originally agreed upon (my private lender was a family member who was growing increasingly nervous with the situation).
- They have the listing agent call me a week later at 2:00 in the afternoon saying that they will accept my offer only if I close that day (which I obviously couldn't with conventional financing).
- I say, "Pound sand!" and mentally divorce myself from the deal.
- They call back two weeks later and say they will accept my revised offer.
- I finally go to closing a month later.
- Total time from initial offer to closing... 4 months.
Long story longer, I guess it ended up pretty well since I saved $5K on the deal, but I was so frustrated by the end of it that I almost didn't do the deal out of principle.
REO's are fun!
I am almost certain that you did not deal directly with Deutsche bank on your closing for this asset. DB uses a slew of Servicing companies, including mine, to handle their REO transactions. It sounds like you were dealing with a bad servicing company (3rd party) or someone who didn't know what they were doing.
Deutsche Bank is our most successuful investor in the REO game that w service for. We have had no problems with closing their deals and it sounds like this one instance could have happened with any institution.
Sorry to hear about your bad experience, but please do not write of DB as the worst REO lender to deal with.
Scottsdale, AZ · Member since 2008 · 342 posts · 15 votes
17y
Originally posted by REHoldingsJax:
Fannie Mae!!!! They put a deed restriction that does not allow you sell the property for more than 120% of the purchase price within 90 days OR mortgage the property for more than 120% of the purchase price within 90 days of the deed. I guess they just want the REOs to look like crap and bring down the neighborhood, also nevermind the factor that someone might need the mortgage $$$ to rehab it!!! This is proof they discriminate!!! If the gov't can't have it...nobody can!!!
This is the Notorious "Flip Rule" probably inherited from FHA guidelines. It is to keep investors for flipping for a profit. It is not discrimination, but it does keep the rehab investors from making a quick sale.
Real Estate Investor · Jacksonville, FL · Member since 2008 · 20 posts · 7 votes
17y
Originally posted by Paul Cordero:
This is the Notorious "Flip Rule" probably inherited from FHA guidelines. It is to keep investors for flipping for a profit. It is not discrimination, but it does keep the rehab investors from making a quick sale.
The mortgage rule is killing me...I buy and hold; but this house needs EVERYTHING. I have to pay cash for the rehab and then refi after 90 days. My intent was never to flip; but in this case, someone without the financial means would not be able to do this. That's why I say discriminate...the mortgage rule not the sale rule.
Real Estate Investor · St. Petersburg, FL · Member since 2008 · 190 posts · 91 votes
17y
Litton SUCKS.
The last two deals I did with them each took 3 months to close. Both deals were nightmares from beginning to end.
It took them FOREVER just to get the contract signed, and once everything was ready to close, it took them an eternity to sign off on the HUD and get the deed package back to the title company.
Real Estate Investor · MD · Member since 2008 · 20 posts · 0 votes
17y
I thought that deed restriction (where you cant flip for 90 days) was lifted temporary due to the terrible housing sales? Do you know if this rule is still active?
Real Estate Investor · Member since 2008 · 340 posts · 34 votes
17y
They all stink. They are slow and inefficient. What is worse, due to higher turnover, by the time you build rapport with an asset manager, he or she has either quit or been fired.
Renter · Yucca Valley, CA · Member since 2009 · 1 post · 0 votes
17y
I vote Deutsche Bank is the worst!
I am in a contract with Deutsche Bank and escrow was to close 2 days ago. The house we bought had termite damage and the REO Asset Manager signed an agreement to pay for any repairs caused by termites & there were termites & damages to eaves and roof. we submitted a request for repairs over 6 weeks ago with no response. How can I contact them or what do I do? We want the house but want them to answer us! Thank you for any answers anyone! Our agent contacts the REO agent and just gets told to wait. We signed an agreement to pay $100 a day if the escrow does not close on time, shouldn't they pay now?
Real Estate Investor · St. Petersburg, FL · Member since 2008 · 190 posts · 91 votes
17y
You won't have to pay the per diem if the bank is the one holding up the closing.
I had them try to do that to me once. They sent me over an extension along with an addendum that said I was going to be charged. I just crossed it out and sent it back along with an email stating that I refused to pay the late fees since I was ready to close and the bank was the one making me wait.
Flipper/Rehabber · Denver, CO · Member since 2009 · 1k+ posts · 726 votes
17y
Originally posted by Stephani:
Litton SUCKS.
The last two deals I did with them each took 3 months to close. Both deals were nightmares from beginning to end.
It took them FOREVER just to get the contract signed, and once everything was ready to close, it took them an eternity to sign off on the HUD and get the deed package back to the title company.
Steph
The differing opinions in this thread are funny, here is another one. Out of the 35 banks we list property for, Litton is far and above our favorite to work for due to their speed (for a bank...) and ease to deal with. Here in CO, 5 day inspection period up front before addenda is signed, they are a little harsh on FHA borrowers, weeding out the flakes pretty easily.
My least favorite to deal with? Bankers Asset Mgmt. They are soooooo slowwwwwwww.. talking 3 weeks to respond to an offer.
Real Estate Agent · Circleville, OH · Member since 2008 · 633 posts · 488 votes
16y
Don't mean to dig up a old thread , but those of you who have delt with litton - were you able to finally close (It seems you have?) I've had a few calls recently asking for help w/ litton, and I had really no way to point them.
I had a CIT asset 2 years ago that took over 3 months to process through on a short sale.......talk about unhappy buyers, but they did get $100k off the house :)
I did a blog a while back on Deutsche bank REO Here , they're pretty messy too.
Flipper/Rehabber · Denver, CO · Member since 2009 · 1k+ posts · 726 votes
16y
Originally posted by Brandon Schlichter:
Don't mean to dig up a old thread , but those of you who have delt with litton - were you able to finally close (It seems you have?) I've had a few calls recently asking for help w/ litton, and I had really no way to point them.
I had a CIT asset 2 years ago that took over 3 months to process through on a short sale.......talk about unhappy buyers, but they did get $100k off the house :)
I did a blog a while back on Deutsche bank REO Here , they're pretty messy too.
On the listing side, Litton is the easiest to deal with, with no title/deed/other funny issues other banks throw in. I think Stephani had bad luck w/ her Littons.