never a dull moment in short sale listings!! Has LBPS pulled this on anyone else??
I really am enjoying working with Louis, a negotiator at LBPS ... its been going pretty smooth so far ... we have the MI approval and just waiting on the investor.
My seller, has missed three payments, they have to sell ... but that's not why I am writing this today.
I just received a phone call from Alex ... a rep from Safeguard Properties. He is at my property, and has a WORK ORDER to change the locks and SECURE the property!! I said, what, he said yea, and I said no way and he said, yes way! Anyway, he said he was not going to do that ... since we have the home listed and a short sale contract and we are in negotiations. He gave me Safeguard Properties phone number (216-447-8211 just in case anyone needs it), and I called them.
They said the work order was the correct address. I told them that the property is not foreclosed on, has been listed and has a short sale offer that is going through negotiations with LBPS. They told me that I had to have my borrower/seller contact the bank. Which, I called them immediately and they are on the phone with LBPS as we speak!
I would say this is a BIG error on LBPS part! They can't change locks and secure a property that they have not even sent a trustee sale notice out! Geez ... so, if I have any updates, I will let you know. But for now, Safeguard Properties is not securing the property. And thanks to me, Alex said if I did not have a for sale sign out front, he would of secured the property. But instead called me!
As I said, never a dull moment in the short sale listings of our career!
Replies to This Discussion
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Permalink Reply by Laura Marshall on
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If the property is vacant, they can secure it...even if it has not been foreclosed upon.
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Permalink Reply by Barbara J. Rice on
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Is the property vacant Nancy? If so, and the lender had any indications that the property was "abandoned", I'm pretty sure they DO have the right to secure the property (change the locks). Read through the mortgage paperwork and you'll most likely find a section that deals with abandonement (not sure that is spelled correctly!) and their right to secure the asset. You were very fortunate Safeguard Properties called you. I've had one property seized WITH a sign out front AND an electronic lockbox on the property and they changed the locks out anyway. We got it squared away the next day but it was frustrating.
IF, however, your clients are still in residence, now that's an entirely different story!!! No bank should ever seize a property that is still owner occupied. Even if they've received the property back through foreclosure I believe they'd have to go through the formal eviction process rather than being allowed to just change the locks.
I'm glad for you and the sellers that everything worked out OK this time. In the future I recommend everytime you speak to the bank that you verify to them that the property is secure (that you check it every week, etc). That should head off this issue before it happens again.
Good luck with your approval from LBPS!
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Permalink Reply by The Negotiator on
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Barbara is right! Your story happens ALL the time.
If the lender ever asks, say the property IS NOT VACANT even if it is.
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