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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Permalink Reply by Jeff Payne on July 25, 2011 at 3:56am

Good advice.  I think that the lenders can recommend someone but to pay the seller to use another realtor is crossing the line.  I bet the lenders legal department would not like it.

As far as changing the locks, the lenders can and will change the locks if they think it is in their best interest to resecure the property and they most likely have the right to do it, written somewhere in the fine print most likely.

Sherry J. Kupper, Lic. #01271033 said:

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.......
Permalink Reply by Thom Colby CA Brkr 888-391-5245 on July 25, 2011 at 4:02am

Google:   Selene Finance Complaints     and also      Meridian Asset Services  Complaints

 

Permalink Reply by Nancy Campbell on July 25, 2011 at 4:22am

First, regarding the changing real estate agents - that is bull and if its a Fannie Mae or Freddie Mac - report it!

Have you contacted the lender? Call them!

Every time I call, I tell them the property is being maintained. But, I did have one that changed the locks ... they had to give me the lockbox code they used. I took the key and made copies for the owner and myself! The home still belongs to the home owner and if they are maintaining the property, then be sure to state that every time you call and tell the homeowners they to say they are maintaining the property. If you have a few pieces of furniture put it in the house too! I also put a note on the window that the property is being maintained by homeowner and if anyone wants access to contact them or me (only my phone number) and if any one does access the property without permission the local police will be contacted.

When this happened to my listing, they drained the pool too!

Also, if the lender is using an outside company, they think they have every right to do this too - because they think it will become a REO and short sale will not go through.

Good luck!!

N.

Permalink Reply by Scott Godzyk on July 25, 2011 at 4:32am
This is happening everywhere, if vacant they are deeming them abandoned an say they are protecting their interests, you need to make sure the property is posted that it is secured with a name an dphone number and no tresspassiong sign and file a breaking and entering report with the police.
Permalink Reply by Jeff Payne on July 25, 2011 at 4:33am
Thom, believe it or not, I got a Selene finance short sale approved in less than 5 days.  We had a previous approval that fell apart last year and Selene bought the mortgage from BBandT.  I sent them the contract and a HUD and had it approved right away.  I would guess that they bought the note for pennies and made out like bandits though.

Thom Colby Newport Beach CA said:

Google:   Selene Finance Complaints     and also      Meridian Asset Services  Complaints

 

Permalink Reply by Jeff Payne on July 25, 2011 at 4:36am
Scott, the police around here wont do anything UNLESS the personal property is removed unlawfully.  We have enough distressed properties that the police understand the banks right to secure the property. 

Scott Godzyk said:
This is happening everywhere, if vacant they are deeming them abandoned an say they are protecting their interests, you need to make sure the property is posted that it is secured with a name an dphone number and no tresspassiong sign and file a breaking and entering report with the police.
Permalink Reply by Jilly on July 25, 2011 at 10:58am

Hey Carolyn,

Are you sure that Selene Finance is the bank holding the mortgage,  and that they hired anyone to negotiate?  Also, if Selene is just the servicer, then the investor (owner) may be interested to know the goings on.    When I google Meredian and Selene, both have multiple entries.  Just a thought. Good Luck sifting through the grime.

Permalink Reply by Ryan S. Carrigan, J.D. on August 4, 2011 at 11:45am

happens all the time here in socal!  in fact today I went to one listing we have in escrow that is vacant and under BOFA and they hired a "company" to keep the place secure (since then it has been broken into 3 times and the grass is out of control) I showed the p-roperty for a bpo two days ago and yesterday I saw a company WSR (from riverside california) came out of the property and they said they were the company hired by BOFA to secure the property.  today i show the property to the buyer's agent and I notice that all the ceiling fans and hallway lights are gone and replaced with $3 lightbulb fixtures with a string turn on.  that was not like that two days ago, WSR says no comment and that they are only doing what BOFA asks them to.  they do this and change the locks and fixtures ALL the time out here.

 

 

Permalink Reply by Steven J. Pahl on August 6, 2011 at 2:38pm
This is one reason I never put my lock box on the doorknob of short sales, always on a railing or hose bib away from the front door.  Once I have had this happen when the home was still owner occupied.
Permalink Reply by Woody Edwards on August 6, 2011 at 3:47pm
That is exactly what I do.  Go to Lowes or Home Depot, and look in the padlock area.  They sell a plastic wrapped chain with loops on the end to put your shackle through, then you can fasten it to a post or railing.....not the door knob.
Permalink Reply by TOP END Properties on August 12, 2012 at 6:14pm

- The lender can legally change the locks once deemed vacant.

- Change the back door lock and put your lock-box there.  Post a sign on the front window that you are the contact person for the 'asset'.

- The lender can not select their own Realtor for a short sale (at least not in CT, where the seller holds title, not the lender).

- Double check that foreclosure date..

Permalink Reply by Nancy Campbell on August 14, 2012 at 3:47am

I had a short sale that did not even have a foreclosure or Trustee Sale scheduled yet and the bank changed the locks on front door, placed a padlock on the gate and unplugged the garage door opener! And we had furniture in the home!!  AND it was the third party negotiation company the lender hired that jumped the gun and gave me the lockbox code to their construction lockbox. I made copies of the keys and placed them in the lockbox. Home sold as a short sale! Nightmare but completed!

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