Replies to This Discussion

Permalink Reply by Michael Hayley on August 30, 2012 at 9:42am

Whew! Im thinking, this might be a message from your Higher Power to punt! Let Chase deal with the REO. 

Permalink Reply by Jimmy Williams on August 30, 2012 at 9:51am

Thom,

Have to agree with Michael, looks like a foreclosure! Courts most likely will have to deal with the local municipal looming liens.

Permalink Reply by Sheila Vardakis on August 30, 2012 at 9:52am

wow Thom...............................do you own a gun?

Permalink Reply by Debra Enos on August 30, 2012 at 11:09am

I'm surprised that Chase didn't foreclose for abandonment in the beginning.....but at this point may not foreclose anytime soon, do to all the damages and City Code Compliance liens....that way the City liens will stay on the "seller"....

 

What raised my brows, was the fact that LPS turned on utilities/water without a prior inspection, or foreclosure.  They will do drop by inspections for exterior only, otherwise it is trespassing.  They usually leave a label on a window showing inspection dates (stop by/exterior only). Was the bank informed that the the appliances and sprinkler valves were removed, leaving plumbing pipes open? Your seller may have a case against LPS for damages....only an attorney can tell for sure.

Are you dealing with Chase direct? If not, who?  The Chase direct number I  have is 800-369-2301, EMC 866-483-0153....

Permalink Reply by joe beauchamp on August 30, 2012 at 6:03pm

Many things I don't know - consider this blue sky - Thom, you are a bright guy, so I assume you have tried to get Deutsche to step in and they won't.

You have the power to sell this, but seller is otherwise not cooperating? Can't just walk in and turn off the main water?

If the owner is not physically near by, you might have him sign a limited power of attorney for you - I use those with pinhead banks from time to time - probably works with city water, etc., too. I take a normal POA and put it things like "Limited to the sale of" etc. In this case, I'd put in something like "maintenance of", etc., too.

The several issues of Chase not preserving the property, not declining in writing, etc., seem like you are talking to a low level pinhead at the bank, but I know you know better and would have escalated to the top. Seems like the only think left is public pressure to embarrass Chase via local TV for damaging the town, etc. - no fun..

So, just what DID you do to earn this karma?

Permalink Reply by Thom Colby CA Brkr 888-391-5245 on August 31, 2012 at 2:54am

Folks - thanks for responding.  

 

BTW, I'm the 3rd Party Negotiator on this one (the Listing Agent doesn't like short sales but won't give up the listing).   In a way, I guess I'm "venting". 

 

Here's the answers to your questions & much appreciated comments;

 

@Michael Hayley - Sometimes I think that as well but I've worked on it for 18 months, got all of the other liens negotiated even though I never expected to, so I'd like to see it close and get paid, plus I'd like to help the neighbors and City feel better about this property.

 

@Jimmy - This is CA, it will be a minimum of 5 more months before it can be sold at Trustee Sale; 1 month for the "Intent to File an NOD", then the NOD, then 3 months to file NTS and finally 21 days to the auction. So this property has been vacant about 9 months already and will be for many more months to come.

 

@Sheila - for myself............ LOL

 

@Harry - Who said it was a problem file :-)  LOL  

 

@Debra - I've never known a servicer or lender to foreclose for Abandonment - The Deed of Trust says they can maintain it if the borrower doesn't.   LPS never went inside the property before turning on utilities - surprised me too. It wasn't until I really raised hell about the flooding that "someone" (Not LPS) changed the lock on the back door and placed a lockbox - which Chase still denies.  Chase says no one has ever been inside the property nor have they ever changed the locks (I have photos).  Chase Property Preservation has had multiple different stories  - they changed the locks, they didn't change the locks, they've been in the property, they've never been in the property.  BTW, LPS never tagged the property nor has anyone placed any contact info on the property about maintenance.  The appliances and sprinkler control unit (not the vales) were removed by the borrower / seller. So the flooding happened because the water was turned-on by LPS while there was a leak inside the house but they never inspected it.  The lawn is dead because the sprinkler control unit is gone and the in-ground sprinklers cannot be operated - PLUS now there's no electricity to operate the sprinkler control unit!  I have been dealing with the Negotiator at Chase who no longer returns any calls, and Chase Property Preservation.  The last call I had with the Negotiator was to ask again for a copy of the Decline Letter and she told me the borrower needed to make a claim against LPS directly.

 

@Larry - Title is still with the original borrower & spouse and of course subject to all the current liens and new liens being filed.

 

@Joe - Yes, you are right, I have escalated "beyond the Mars Rover" at this point.  Deutsche will not speak with me or anyone except Chase (this feels like short sales circa 2006).  All of the water shut offs going into the house failed so the water could not be stopped except at the utility meter which the neighbors did when additional hose bibs started to fail and flood the street.   The water utility will only take a shut off order from LPS (fired by Chase and no longer maintaining this property)  What an odd situation; too much water inside the house and no water on the lawn!  This 5,000 sq.ft. home is located in an upscale city and prominent neighborhood in the CA Desert.  The owner now lives a few blocks away and truly believes he "gave the house back to the bank when he told them so in a phone call in Janury 2012" HA !  Remember, they filed BK several years ago and has since been discharged so any of the new fines from the City are "new debt".  The "High Season" is beginning and this property will have a big effect on neighboring homes so I expect the media will pick it up soon.  The City has sent certified letters to both Chase and Deutsche Bank with no response from either.

 

Thanks everyone, I'll let you all know how it goes.

Permalink Reply by Michael Hayley on August 31, 2012 at 3:01am

And I think I have some problems. They are nothing like this!

It seems to me  you are wasting your professional time/talent and should be helping other sellers who want help and will not strip the property. Let government protect the neighborhood. 

Permalink Reply by Thom Colby CA Brkr 888-391-5245 on August 31, 2012 at 3:28am

I agree - With more than 100 short sales completed, this is the FIRST where the seller stripped the property and stopped cooperating.  Today is the last day I will even look at this file.  Thanks !

Permalink Reply by joe beauchamp on August 31, 2012 at 4:22pm

Oh Thom, you have to keep this going - I see a Dr Seuss novel coming. You have a desert town refusing to turn off.....water?? Only in America. And you bring up something I hadn't thought about since BofA refused to accept a deed-in-lieu a few years ago. Until then, in the back of my mind was the nebulous workings of deeds. A semi-contract only signed by one side. How do you reject a deed? If the owner of this property signed and recorded a deed giving the property to the city, how is that not as good as any other deed? Why has he not actually signed over ownership to the city and let them sue themselves to turn off the water? It seems weird that both sides have to sign a contract, but to give you a "white elephant" property, you don't? It doesn't have to be accepted, it all of a sudden belongs to someone else. This seems like a prime opportunity to give this turkey to someone you don't like - let them get sued. (But to keep this going, why not get the owner to sign the property over to the CEO of BofA? You know, get him personally involved/sued...HA!)

Permalink Reply by Thom Colby CA Brkr 888-391-5245 on September 1, 2012 at 2:52am

@Joe -  

The water District won't take any action from anyone except who's name it's currently in which at this point is LPS - or the owner (who can't be bothered)

The owner never tried to "Deed" it to Chase / Deutsche - he simply told them on the phone "it was theirs" (LOL)

Quite frankly, I don't know how he can Deed it to anyone without them rejecting it - there are too many other liens against it.

Why would he give this property to BofA - It's Deustche Bank serviced by Chase - (I suspect you actually meant Chase although that would be funny to Deed it to BofA !!!!! )

Permalink Reply by joe beauchamp on September 1, 2012 at 3:45am

Sorry about slipping with my natural nemesis.. That does add a creative wrinkle to the term entanglement, though.

But, I don't know of a mechanism to reject a deed. A deed is signed by the grantor only, right? That is what seems odd to me with something so important - you don't have to accept it, you suddenly just have it.. That is why I actually started thinking about it when a client told me that the bank would not accept a deed-in-lieu - they can refuse to talk to the owner about it, but how do they refuse a deed? I don't think one can.

Permalink Reply by Thom Colby CA Brkr 888-391-5245 on September 1, 2012 at 3:53am

HA !

Correct - Deed is only signed by the Grantor not the Grantee.  Deeding it to someone / some other entity is not the issue - you can Deed all you want....... It's the "In-Lieu" they'll reject............  Plus no lender, servicer, investor will ever accept a Deed to a property with multiple subordinate and superior liens from the Federal or Local Government.

It really would be an interesting excercise however :-)

 

And, BTW, the Listing Agent "EXPIRED" the Listing this morning as she's "over-it"

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