Real Life Bank Foreclosure Freeze Tale

Okay, so I know many of you are probably tired of hearing me talk about the foreclosure mess that is ongoing.  But it’s real.  It effects buyers.  It effects realtors trying to make a living.  It effects neighborhoods with deteriorating housing.  It effects housing values.  It effects tax payers.  It effects bank profitability.   Title companies.  Contractors. Etc.  The only people that I can think of that really benefit are the lawyers.  Need I say more?

So back on September 23 some clients of mine reached terms to purchase a bank foreclosure in Olathe.  The closing was to be on or before November 5 but everyone agreed, as is usually the case, to close much sooner.  Then everything ground to a halt and the buyers were told they would close by 11.5 but not before.

On November 4 I start getting calls from the listing agent and the title company.  Everyone was insistent that we sign an extension immediately to keep the house under contract.  So we eventually signed one extending the closing until November 30.  They kicked it back saying they wouldn’t extend past November 26.  Okay, you should grab a calendar.  They were being pissy about the day after Thanksgiving, a Saturday and a Sunday and then two business days, Monday and Tuesday.  Apparently my buyers and I were the only ones that had a calendar or could read it.

So we signed their extension through to only the 26th.  So on Wednesday afternoon I get an urgent email and a phone call saying we need to get an extension signed because it hasn’t closed.  No crap.  Of course, I was the one that had to call them ask what the hell was going on.  But that’s another story.

Now they want another extension signed through December 27.   I would again refer you to a calendar.  That’s the Monday after Christmas. So we all know that there won’t be any work done at the title companies or the asset manager’s place on the 24th, Christmas Eve.  Christmas is on Saturday.  Sunday, no way.  But let’s back up, I’m also sure we’re not going to see too much work done on the 23rd, either.

And again with the same terms.  You know, bank has all the rights and the buyer just has to bend over on the bank’s whim.

I’m not trying to be rude here.  But does any of this sound normal to you?  How is the buyer supposed to move forward?  And he doesn’t have a plethora of other options.   Why?  Because of the foreclosure freeze there aren’t any new foreclosures, or very few actually, coming on the market at this time.

This is a fine mess we’ve gotten ourselves in to.  🙂