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The Short Sale Black List!!

Posted by Eric Mieles on May 12, 2011 at 10:22am in Short Sale Discussions

I'm curious if anyone has heard of such a thing. I was talking with some insiders and they mentioned that there is a list called the "Cruel Inspection List" it's an industry wide list that has the names of companies, Realtors and Brokers doing shady business and/or suspicious.

 

Has anyone else heard of this?? I'm curious.

 

Thanks

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Tags: banks, black, brokers, lenders, list, realtors, sales, short, suspicious
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Replies

  • Tamara Dorris May 23, 2011 at 6:27am

    Bryant, let us know the link to your newsletter?



    Bryant Tutas said:

    I'm going to feature this one in the newsletter today. Let's see what others have to say about this.
  • Clea Annecchiarico May 19, 2011 at 3:29pm
    Yes, I agree with pinkribbonlossmitigation, the list has been around for several years.  If banks/investors/insurers recognize a name (buyer or realtor) who doesn't close after getting approvals or flips in an unacceptable way, they deny the short sale.  It happened a long time ago to someone I knew and it just happened again about a month ago to someone else: this last person wasn't told who was unacceptable to the investor, he was just told that someone in the transaction was not acceptable.  BTW, supposedly Equator only tracks realtor performance however it is very easy for them to track all kinds of variables and they do go after realtors that don't disclose if their company is the buyer.
  • Eric Mieles May 17, 2011 at 1:43pm

    Have to say thanks to everyone who commented. Great insight and information.

     

    Thanks

  • Melanie Carney May 16, 2011 at 6:57am
    Eric, every lender has these "lists". They have been around for years. I'm sure other mortgage broker's have run into issues with certain appraisers who were placed on a lender's Black List becuse the lender felt they were in some way or form operating in a less than professional manner. Same goes for real estate agents and investors. Putting in multiple offers and never closing on approved files could make a lender very unhappy as well as issues with straw buyers or outright fraud. If an investor or agent is on a list, more than likley they deserve to be there and you should avoid doing business with them.
  • Josh M. Boggs May 16, 2011 at 6:26am

    WOW!! Now that's something I've never heard before.. a servicer requesting a change of listing agents to the principals on the contract?  I'd like to hear more on that.

     

    I'm certain there is a list; there's got to be.  But will we ever get a copy and have it confirmed.. my bet is a big fat "nope".


    Rick Stuart said:

    I don't know whether it is industry wide list but I have received 2 short sale listings because the servicer refused the file submitted because in one case, the realtor was unacceptable to the servicer and in the other the brokerage (a small local brokerage) was unacceptqable to the servicer.  Both servicers advised the borrower that they would have to submit with different listing agent and brokerage before they would review the short sale request and in both cases I closed the short sales.
  • Jeff Payne May 16, 2011 at 5:20am

    I was fired by Wells Fargo and told that I was on their list a few years ago. They actually called my broker and told him that I was never allowed to work a Wells Fargo sale again.  Funny part is that I got a Wells REO listing the following week and have closed alot of Wells short sales since then. I am sure that the lenders who use "equator" type systems have a better way of tracking you and grading you.

    Oh well, they can put me on their list anytime, it means that I am most likely doing a good job :)

  • The Negotiator May 16, 2011 at 3:10am
    I've had chase refuse 2 buyers who they claimed were NOT arms length. Unless they were "brothers from another mother," I had no clue where Chase got their info.
  • Dana Harris Carter May 15, 2011 at 8:17pm
    Very interesting to say the least. If such a list existed, I would be the first one to make suggestions of whom to add to it to be frank, as I investigate real estate and mortgage fraud in my specialty area. However, I have never heard of such a list. I've been a Preforeclosure/Bankruptcy/Fraud Specialist full-time for 15+ years now. First of all it would be IMPOSSIBLE to maintain such a list by all lenders. Secondly, they barely have enough time to process shortsales let alone maintain such a list. Lastly, there are tons of agencies at the local, state and federal levels. There is absolutely no way that they have been able to come together and be organized enough to even begin processing mortage and/or real estate fraud complaints which is what should be done. Then if the perpetrators are prosecuted perhaps they will lose their licensure and won't be a problem to anyone or any lender. The only way I could see such an alleged "black list" exist is if it was a very small lender in a very small town and the alleged perpetrators have been involved in shortsale fraud or other related local scams and/or convicted of it.
  • Julia Fishel May 15, 2011 at 3:56pm

    Eveyln - WOW!  Anyone else on this? Scary stuff...

     

    As for my report card with BofA,  I've always sensed they probably had a file on me.  (My husband and I both used to work in the Corporate Development Dept. of World Savings Headquarters in CA back in the day - the 1990's - I KNOW they kept files on people -at least World did so this does not sound surprising that BofA would to the same).  

     

    Anyhow,  I went to the CEO's office at BofA about a half dozen times on one particular short sale lin 2010.  Closed it after 2 years, was always polite, though was always concerned I would show up on a 'watch' list.  Mind you, between the time they denied the 1st sale and then finally approved the final 4th sale 2 years later  (after going to the CEO's office many times and even trying to fight a bad Fannie BPO), they "lost" over $100K!!!

     

    I fought the battle for our sellers as that was the right thing to do- though I still wonder if I'm on a black list for life.  I was a pain in their side  - though not 1/10th as much as they were for the sellers  Vowed at the time not to take another BofA short sale listing - though now am finding that Wells is the new BofA. Ugh....

  • Evelyn Blanks May 15, 2011 at 1:05pm
    I have heard that Bank of America has a report card for each agent they have done business with. 
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