REO Games

It sure seems the bank we are dealing with doesn’t care how quickly they get their properties off their books. Our escrow on Windsor has been dragging on for a week now. Initially we were supposed to close escrow and hand the keys to the buyers this Friday. Well, that isn’t happening as much as the bank thinks it is. It seems the left hand doesn’t know what the right hand is doing.

It started with waiting almost a full week from verbal acceptance before we had a ratified contract. The bank then chose an escrow company in Texas, then changed they’re mind after not finding a branch in the bay area, duh! But wait, isn’t that a RESPA violation, it’s the buyers choice to choose the title company, well it’s a bank that owns the home so apparently anything flies. Someone’s getting a benefit somewhere. Seems all the real estate laws or legal wording in the purchase contracts are nothing but words to the asset managers handling these REO’s for their bank.

We asked early this week for a price reduction based on the buyer’s reports that show some damage and also asked for an extension of a week for the close of escrow. They granted the extension but no price reduction or credit.

The excuse they gave our buyers for not granting a price reduction or credit towards the $42,000 in repairs is what really disturbs me and should any buyer. Their excuse was that the verbal “highest and best offer you are willing to make” should have taken into consideration the repairs noted on the reports because they would have been noticeable without the reports. I’d agree with them if I was a licensed contractor or had the reports outlining the damage when our buyer made the initial and subsequent “highest and best” offers. Although I may have a construction and property management background I am a Realtor now and I have to be careful about how I comment on visual damage. Some visual damage may not be what it seems on the surface and may point to costlier repairs. Remember the bank received five offers on this home, four were called to submit their verbal highest and best offer which included our buyers. Nothing was in writing as in a regular transaction where notice that a multiple counter offer was given. How do we really know if the other three or any were actually called to resubmit their highest and best offer? No one will ever know.

My opinion is, had the banks taken a different stance and worked with their customers on re-negotiating their loans we would not be in this predicament. I wonder just how many of these homeowners will ever make a deposit in the bank that kicked them out of their homes. I think these lenders are just digging themselves into a bigger whole in the big picture. When the economy turns, the tens of thousands who lost their homes while trying to save it will remember how their previous mortgage company handled their plight.

Don’t forget tonight, on Thursday 6/4 LaVal’s Pizza in the Harbor Bay Landing Center will be hosting the first of two “Hot Rods at Harbor Bay” Car shows of the year. Admission is free to view the approximately 50 plus cherry cars owned mainly by Alameda residents although there are plenty of cars from neighboring cities too. There is also a raffle and if you get thirsty or hungry and need a break there’s always LaVal’s Pizza nearby.

So what’s the market in Alameda doing this week? See for yourself by the graphs and clicking on the links below.

NEW

PRICE CHANGES

PENDING

SALES

ALL RESIDENTIAL INCOME (activity for the last month)

If you have any questions feel free to contact Nancy or me.

Ciao for now, Chuck