Banks hiring contractors to break in to listings

Hi All,

I have a short sale listing in Minnesota and the bank that I am working with (Selene Finance) and they have hired Meridian Asset Services to help negotiate the offer when one comes in.  I find out that either Selene or Meridian hired another company to break in to my listing knowing full well that it was secure and that utilities were still being paid for by the sellers.  The property is vacant.  This company drilled through the deadbolt, cut off my lockbox, and changed the lock on the front door. 

A representative from Meridian is also calling each of my sellers on a daily basis and telling them to cancel the listing contract with me and that she has another realtor lined up to take over. 

There has been no sheriff's sale yet so it is not bank owned.

Any suggestions on what I or my sellers can do about this?  I have reported the breaking and entering to the sheriff so far but I want to do more and so do my sellers.  This is such unethical behavior I just can't stand it and want to fight back.  Please offer any suggestions!

Thanks,

Carolyn

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Replies to This Discussion

Permalink Reply by Jackie Thompson on July 24, 2011 at 8:38am
Request a QWR from the mortgage company to help you get your short sale approved.
Permalink Reply by Len McGuirk on July 24, 2011 at 8:44am
I apologize for my ignorance, but what's a QWR?
Permalink Reply by Cathy Ryan on July 24, 2011 at 10:53am

Report them to the DRE.  This is clearly a violation of the code of ethics.  I know here in California that a broker cannot contact or solict a seller who is under contract.  You probably have the same code.  The seller still has rights to the property.  The bank has an obligation to secure their asset, but they do not have right to force the seller into using their broker. 

 

Good Luck.

Cathy Ryan

Permalink Reply by brenda rogers on July 24, 2011 at 2:19pm

A cease and desist letter to Meridian from your clients or your clients' attorney regarding harassment by telephone to start and then there is the giving of legal advice to their Borrowers regarding the cancellation of their contract with you.  Not good.  Sellers should request all communications from Meridian in writing per Federal law.

 

get it in writing every single time and commit your telephone conversations to paper and send via fax or email to Meridian reflecting your understanding of any phone conversation.  Your letter and your client's letters should begin with, "The purpose of this letter is to confirm our conversation and understanding of the status of the subject account (or whatever the subject of the conversation was) pursuant to our telephone conversation on the same date of this letter at __:__ p.m. or a.m. It is my understanding that........blah, blah, blah.  I will assume that this comports with your understanding of the subject telephone conversation unless you notify me in writing to the contrary."  Thank you and have a Merry Christmas. 

 

While I realize this may be a pain in the a$$, you are protecting yourself and your clients.

 

p.s. those property preservation people are pretty nasty.  I suggest leaving a note on the door that says, "DEAR PROPERTY PRESERVATION PERSON:  PLEASE DO NOT CHANGE THE LOCKS, I STILL LIVE HERE.  I MAY HAVE SOLD ALL OF MY BELONGINGS AND SLEEP ON THE FLOOR BUT I KEPT MY GUN!"

 

Good luck!!

Permalink Reply by Michele Peterson on July 24, 2011 at 2:41pm

Will depend on the initial contract/loan docs signed between the bank and the current owner.

Several contracts do say - Must be owner occuppied for duration of the loan, not to be sub leased or rented. 

I just had two short sales where both contracts stated the above verbage or something very similiar.

One was Cal HFA and the bank reminded me prior to submitting our Short Sale that the owner must be occuppying the property at all times or it will be immediatley foreclosed on as abandoned property. 

 

The other was with a sub-prime lender.  My owner on this listing informed me of the issue as we were listing because he can't rent the property out to cover the payment with the loss of their job.

 

Read the fine print.  It may be listed their in the original loan docs.

Permalink Reply by Kathleen Lordbock on July 24, 2011 at 4:49pm
As I stated earlier there is a huge difference between unoccupied (vacant) and abandoned.
Permalink Reply by Jeffrey Burnham on July 24, 2011 at 5:03pm
Kept the gun??!! Bwah, ha, ha... I LOVE it!!!

Brenda Rogers said:

A cease and desist letter to Meridian from your clients or your clients' attorney regarding harassment by telephone to start and then there is the giving of legal advice to their Borrowers regarding the cancellation of their contract with you.  Not good.  Sellers should request all communications from Meridian in writing per Federal law.

 

get it in writing every single time and commit your telephone conversations to paper and send via fax or email to Meridian reflecting your understanding of any phone conversation.  Your letter and your client's letters should begin with, "The purpose of this letter is to confirm our conversation and understanding of the status of the subject account (or whatever the subject of the conversation was) pursuant to our telephone conversation on the same date of this letter at __:__ p.m. or a.m. It is my understanding that........blah, blah, blah.  I will assume that this comports with your understanding of the subject telephone conversation unless you notify me in writing to the contrary."  Thank you and have a Merry Christmas. 

 

While I realize this may be a pain in the a$$, you are protecting yourself and your clients.

 

p.s. those property preservation people are pretty nasty.  I suggest leaving a note on the door that says, "DEAR PROPERTY PRESERVATION PERSON:  PLEASE DO NOT CHANGE THE LOCKS, I STILL LIVE HERE.  I MAY HAVE SOLD ALL OF MY BELONGINGS AND SLEEP ON THE FLOOR BUT I KEPT MY GUN!"

 

Good luck!!

Permalink Reply by Michael Campus ABR,SFR,SRS on July 24, 2011 at 5:13pm

Wow! Carolyn, alot of drama on this one.

Somebody mentioned 'tortious interference', I agree.  It doesn't have to be another Realtor that violates your contractual relationship. You are licensed by your state, and you have a legally binding contract with your sellers. Not only could the company calling your clients be liable for damages, but (this is the part I like) since you said they told your clients to switch companies because you don't know what you're doing, they have committed "slander per se".

 

So I don't type a couple pages explanation, please look it up. I've been there, done that, and I've been all the way to the Nevada Supreme Court with clients (we won). I'm not a lawyer (yet) but I'm studying for the bar and contracts are my specialty.

 

As far as the lender securing the property because of abandonment : Please everybody pay attention here:, If you have a listing agreement, then you have an agency relationship that includes promoting and protecting the general welfare of the property. With placement of your lockbox upon the property, you have indicated the property is secure and under your supervision. Get it in front of a judge and I seriously doubt they would consider abandonment. 

 

Alas, some of you may have even discussed this very subject with a lender representative who may have said something like "the bank has a right to protect its asset" - (some jibberjab that may be worded in the mortgage papers eh?) Play this back against the bank and ask them if they are so concerned with protecting the asset why don't they just go ahead and approve the short sale? Hello bank, protecting the asset also includes making the HOA current and paying those dues, and maintaining the property such as mowing the lawn, and general upkeep.  They can't just single out changing the locks as 'securing the property'.

 

Good luck and don't be afraid to file charges or sue someone.

Permalink Reply by Victoria Frieberg on July 25, 2011 at 2:22am

what do you use for an Affidavit of Intent to Occupy?  can we see a blank copy?

 

Permalink Reply by Bart Bergbom on July 25, 2011 at 2:38am
Not same situation, but i hade a client who we were working short sale for and the lender had file in collections at the same time.  They recieved calls daily.   We simply sent a letter requesting the cease and desist calling the house and that all contact should go through me as the agent.  Calls stopped.

Carolyn Lien said:
I am so annoyed by this fox.  They keep calling my clients and harrassing them.  I have never seen anything this abismal and unethical before.  They need to be stopped!  But how???

Rob Carrino said:
The fox watching the henhouse.......
Permalink Reply by Janet Nelson on July 25, 2011 at 3:10am
I wonder if the bank could be reported to the government bank regulators, or some branch of them...If it's an FHA/HUD loan, I'd also try filing a complaint on the bank with HUD. However, I'm not sure how much teeth the government has on the banks any more. Worth looking into perhaps. Good luck. Thanks for sharing your story!

Carolyn Lien said:
I am so annoyed by this fox.  They keep calling my clients and harrassing them.  I have never seen anything this abismal and unethical before.  They need to be stopped!  But how???

Rob Carrino said:
The fox watching the henhouse.......
Permalink Reply by Sherry J. Kupper, Lic. #01271033 on July 25, 2011 at 3:22am

Hi Carolyn,

I would advise your clients to contact an attorney and to let the Lender know that if they are forced to use their Realtor and the short sale is not approved and they lose their home to the sheriff's sale, that it will be the fault of the Lender since they chose the Realtor.  Read their loan paperwork closely, but there should be a provision that states that the Lender cannot in any way cause a situation that would result in the Borrowers losing their home.  The Borrowers may then have the right to pursue getting the home back and the lien would have to be forgiven.



Carolyn Lien said:

Hi Jeff,

The sheriff sent the complaint to the district attorney for them to decide whether to press charges or not. Not sure if they cut it off but it is missing and a new lock is on the door. There is a plate over the spot where they drilled out the deadbolt.  Both Selene Finance and an asset specialist from Meridian Asset Services have been calling my clients every day and telling them to cancel the listing contract with me.  They have even gone so far as to tell them I don't know what I am doing and that the sheriffs sale was held two weeks ago but I have visual confirmation from Carver County that the sheriffs sale is not scheduled until July 29th at 10am.  I have give both of the sellers a copy of this and kept them in the loop at all times but Mr. Seller has a traumatic brain injury and gets riled up very easily and doesn't understand as well gets confused easily.  I feel that they are really trying to take advantage of him.  Mrs. Seller gets it and wants to keep me as their realtor to protect their interests.   I am reporting this to the attorney general but don't know what else to do.  If anyone has any suggestions, please advise.  This is very unethical on thier part not to mention harassment.

Jeff Payne said:

What did the police say about them breaking in and changing the locks?  Did they actually cut your lock box off?  Why would they do that if they are changing the locks anyway?   I have been lucky, have only lost one electronic lock box, of course the property preservation company denied that there was a lock box on the door.

Who is telling your seller to fire you?  Selene Finance?

Carolyn Lien said:

I am so annoyed by this fox.  They keep calling my clients and harrassing them.  I have never seen anything this abismal and unethical before.  They need to be stopped!  But how???

Rob Carrino said:
The fox watching the henhouse.......

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