Nathan Gesner, Broker / Property Manager (American West Realty and Management)

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Rainmaker
822,578
Candice A. Donofrio
Next Wave RE Investments LLC Bullhead City AZ Commercial RE Broker - Fort Mohave, AZ
928-201-4BHC (4242) call/text

Bank called the note. My Spidey senses are tingling on this one. Although I don't disbelieve that 'someone' at the bank advised the borrower to quit making payments, without an actual formal workout, the borrower got very bad advice, probably from a bank CSR with an IQ of less than a rock. Or they misunderstood what was being told to them. It depends on the bank, though. We all know folks who didn't make a payment for two years before they were foreclosed on. 5 months is just about enough time to get a notice of default, Redemption period where you do have to pay back everything owed, then foreclosure.

Feb 16, 2018 12:48 AM
Ambassador
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Debbie Reynolds
Platinum Properties - Clarksville, TN
Your Dedicated Clarksville TN Real Estate Agent

I have heard the same thing. The problem is partial payments don't work but there is a mitigation department at most lenders that can help them modify and work it out. He just didn't get routed to the right people.

Feb 15, 2018 09:12 PM
Rainmaker
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Nina Hollander
Coldwell Banker Realty - Charlotte, NC
Your Charlotte/Ballantyne/Waxhaw/Fort Mill Realtor

With foreclosure actions by banks, I could believe anything these days. And I agree with Debbie Reynolds because I've heard a variation of the same story.

Feb 16, 2018 05:06 AM
Rainmaker
3,207,439
Scott Godzyk
Godzyk Real Estate Services - Manchester, NH
One of the Manchester NH's area Leading Agents

There is an answer to this problem and it is called FORBEARANCE. The bank can take the back money owed, add it to the payoff amount aka balance owed. Then the borrower can start making regular payments and the mortgage is in good standing. It is different from a loan mod as it addresses the back money owed, not just the interest rate 

Feb 16, 2018 04:51 AM
Rainmaker
1,507,472
Inna Ivchenko
Barcode Properties - Encino, CA
Realtor® • Green • GRI • HAFA • PSC Calabasas CA

How awful......

I had a similar story with a friend. He lost his job, white color, high pay. Called the lender..... soon, he lost his house, even shortly he got another job. 

It happened a while ago, but I was shocked how fast bank moved to kick them out. 

Feb 15, 2018 10:56 PM
Rainmaker
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Anthony Acosta - ALLATLANTACONDOS.COM
Harry Norman, REALTORS® - Atlanta, GA
Associate Broker

I have heard it all and yes, that could very well be true. 

Feb 16, 2018 05:50 AM
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Jeff Dowler, CRS
eXp Realty of California, Inc. - Carlsbad, CA
The Southern California Relocation Dude

I don't know but it would not surprise me

Feb 15, 2018 10:17 PM
Rainmaker
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Jill Murty, Realtor - Orange County, CA
Sunset Properties, Powered by Movoto - Laguna Niguel, CA

It actually sounds kind of believeable to me. 

Feb 15, 2018 09:26 PM
Rainmaker
3,108,456
John Pusa
Berkshire Hathaway Home Services Crest - Glendale, CA
Your All Time Realtor With Exceptional Service

Nathan Gesner unusual, but borrower should of discussed the details of payment arrangements.

Feb 15, 2018 09:09 PM
Rainmaker
705,949
Richard Bazinet /MBA, CRS, ABR
West USA Realty - Scottsdale, AZ
Phoenix Scottsdale. Sellers, Buyers & Relocations

Likely.

Feb 15, 2018 08:38 PM
Rainmaker
3,570,469
Richard Weeks
Dallas, TX
REALTOR®, Broker

I would say the lender is well within their rights.

Feb 16, 2018 05:19 AM
Rainmaker
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Lyn Sims
RE/MAX Suburban - Schaumburg, IL
Schaumburg Real Estate

Yes, that's what happens when you try to negoiate against yourself with a lender. The banks do advise owners to stop making payments & it all depends if the owner believes it's the right thing to do. 

Would have been better to do a short with the lender & then no payments would have been due until they sell. In IL, they could live there up to 9 months or so.

Feb 16, 2018 05:17 AM
Rainmaker
831,353
Annette Lawrence , Palm Harbor, FL 727-420-4041
ReMax Realtec Group - Palm Harbor, FL
Making FLORIDA Real Estate EZ

This could very well be a true story. Often told during Banks of Americas caused economic meltdown in '08.

It would be much more helpful if the lender/servicing company was exposed.

Assurance of exposure is the best tool for encouraging good behavior.

This guy needs to play offense and hire an attorney. He may be able to get another year of free lodging and in the process save a nice downpayment.

Feb 16, 2018 05:04 AM
Rainmaker
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Wayne Martin
Wayne M Martin - Chicago, IL
Real Estate Broker - Retired

The bank had the right to call the note. Stupid, but true. Now they will lose money instead of being whole. The employee who clled the note should be fired! And, the attorney representing the owner, should let the judge know the circumstances. Judge may have a few words of advice to the bank!

Feb 16, 2018 05:04 AM
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Silvia Dukes PA, Broker Associate, CRS, CIPS, SRES
Tropic Shores Realty - Ich spreche Deutsch! - Spring Hill, FL
Florida Waterfront and Country Club Living

This doesn't seem to be an insolated incidence.  If you don't have it writing, you can't rely on anything. Unfortunately, your customer got caught up in trusting his lender a little too much without getting advice from an attorney. In retrospect, maybe they could have negotiated a payment plan. 

Feb 16, 2018 04:30 AM
Rainmaker
349,353
Buzz Mackintosh
Mackintosh REALTORS - Frederick, MD
“Experience, reliable, leadership”

Sounds like this person should have been seeking  professional legal advise on how to proceed.

Feb 16, 2018 03:50 AM
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Bob Crane
Woodland Management Service / Woodland Real Estate, Keller Williams Fox Cities - Stevens Point, WI
Forestland Experts! 715-204-9671

Nothing surprises me with many of these lenders, they drive these people into foreclosure and have the govt reimburse the lender for their losses.

Feb 16, 2018 01:43 AM
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Praful Thakkar
LAER Realty Partners - Andover, MA
Andover, MA: Andover Luxury Homes For Sale

Nathan Gesner - as always, another great answer from Candice A. Donofrio.

Feb 16, 2018 10:03 PM
Rainmaker
5,975,228
Roy Kelley
Realty Group Referrals - Gaithersburg, MD

Bad advice and worse results. 

I question the source of the advice.

Feb 16, 2018 11:24 AM
Rainmaker
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Kevin J. May
Florida Supreme Realty - Hobe Sound, FL
Serving the Treasure & Paradise Coasts of Florida

The partial payment route may have alleviated this debacle. If the lender accepts the lesser payment a judge might have ruled in their favor thus avoiding foreclosure. So many variables to consider although non-payment is never an option.

Feb 16, 2018 09:51 AM
Rainmaker
5,001,825
Ron and Alexandra Seigel
Napa Consultants - Carpinteria, CA
Luxury Real Estate Branding, Marketing & Strategy

Nathan,

Candice A. Donofrio has the answer.  A

Feb 16, 2018 09:25 AM
Rainmaker
478,228
Lynnea Miller
Bend Premier Real Estate - Bend, OR
Premier Real Estate Service in Central Oregon

That does seem strange, Nathan.  I know of people who never made a payment for years and were not foreclosed on.

Feb 16, 2018 09:23 AM
Rainmaker
1,315,892
Ryan Huggins - Thousand Oaks, CA
https://HugginsHomes.com - Thousand Oaks, CA
Residential Real Estate and Investment Properties

That's some really bad advice they got.  Sounds to me like the bank wanted the house, I don't know of any bank that won't let you catch up.  Might be worth talking to a real estate attorney.

Feb 16, 2018 09:00 AM
Rainmaker
2,902,215
Kathleen Daniels, Probate & Trust Specialist
KD Realty - 408.972.1822 - San Jose, CA
Probate Real Estate

It is my understanding that banks will not accept partial payments. The reason being is that is not the agreement in the promissory note.  That said, they could have done a work out with the bank and essentially renegotiated payments.  I do believe someone told the person to stop making payments. I know of many people who were told the same thing when I was helping people avoid foreclosure. 

Feb 16, 2018 07:44 AM
Rainmaker
630,684
Peter Testa
Nationwide Homes - Danbury, CT
PETER TESTA

Very real & it's why your bank isn't always the best source of advice when facing financial difficulties. The problem here is that the bank wasn't specific as to why they gave this advice & with only half the answer  it could easily be misinterpreted as it was.

The person who told him to not bother making partial payments was basically saying "pay us partial & we're going to kick the funds back". Banks don't take partial payments. They do however charge penalties for missed payments so if they were one of the few that took your partial payment then you'd be essentially pissing that money away toward the interest & penalties due & still taking on more penalties while doing it.  

When he reinitiated payments he was back due & the only way to get out of the hole is to make full restitution for past payments due & the penalties incurred- upfront. Otherwise you're still chasing your tail like I described in the paragraph above.

 

Feb 16, 2018 07:02 AM
Rainmaker
4,798,978
Gabe Sanders
Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

It could be.

Feb 16, 2018 05:35 AM
Rainmaker
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Thomas J. Nelson, REALTOR ® e-Pro CRS RCS-D Vets
Big Block Realty 858.232.8722 - La Jolla, CA
& Host of Postcards From Success Podcast

Not enough info but gut says NO for two reasons:

Bank not lender makes the call

Short sale was the option over foreclosure

They got bad info. Maybe a lawsuit here?

Feb 16, 2018 04:56 AM
Rainmaker
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Raymond E. Camp
Howard Hanna Real Estate Services - Ontario, NY
Licensed Real Estate Salesperson Greater Rochester

I have heard it here.

 

Feb 16, 2018 04:12 AM
Rainmaker
1,937,593
Michael J. Perry
KW Elite - Lancaster, PA
Lancaster, PA Relo Specialist

Yes this now happens alot ! It the Lender's way of being able to Foreclose quicker 

Feb 16, 2018 03:27 AM
Rainer
277,417
J.R. Schloemer, CRS
Kentucky Select Properties - Louisville, KY

I can't verify, but I can say that is pretty harsh and seems borderline predatory.

Feb 15, 2018 07:36 PM
Rainer
390,319
Anna Hatridge
R Gilliam Real Estate LLC - Farmington, MO
Missouri Realtor with R Gilliam Real Estate LLC

yes, I took had a client receive similar information and treatment.  

Feb 16, 2018 09:12 AM
Rainmaker
5,440,963
Barbara Todaro
RE/MAX Executive Realty - Retired - Franklin, MA
Previously Affiliated with The Todaro Team

he was in default....

I remember long ago after the mess hit the fan, there were some banks who would begin foreclosure proceedings if you were in the grace period with your payment!!! 

Feb 16, 2018 08:34 AM
Rainmaker
1,550,452
Gary L. Waters Broker Associate, Bucci Realty
Bucci Realty, Inc. - Melbourne, FL
Fifteen Years Experience in Brevard County

When it comes to lenders, like the government, they are not there to help you!  Cynical?  Probably!

Feb 16, 2018 07:20 AM
Rainmaker
2,569,903
Richie Alan Naggar
people first...then business Ran Right Realty - Riverside, CA
agent & author

I remember when foreclosures started years ago and no one inside or out knew what to do. It was pure chaos. Then, all lenders let their legal departments dictate a procedure: Stop paying so we can trigger the foreclosure process and then discuss stays or modifications. That pretty much remained steady for years. Once in closure, you are at the mercy of all

Feb 16, 2018 07:02 AM
Rainmaker
515,078
Rose Mary Justice
Synergy Realty Pros - Dandridge, TN
Synergy Realty Pros

Such a sad story. I wouls like to know which bank allowed this to happen.

Feb 16, 2018 05:53 AM
Ambassador
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Joe Pryor
The Virtual Real Estate Team - Oklahoma City, OK
REALTOR® - Oklahoma Investment Properties

If you give partial payments you are just giving money away. It is all or nothing,

Feb 16, 2018 05:40 AM
Rainmaker
577,189
Gloria Valvasori, Accredited Senior Agent
BETTER HOMES AND GARDENS REAL ESTATE SIGNATURE SERVICE - Mississauga, ON
REAL Experience | REAL Commitment | REAL Results!

I think he got some bad avice initially from someone who really didn't know what they were talking about, and unforutnately ended in a bad result.  I'm sure if  he spoke with someone else at the bank, (who was competent) they should have been able to work something out with respect to payments.  This is so harsh...

Feb 16, 2018 05:36 AM
Rainmaker
492,369
Greg Large
ERA Real Solutions - Grove City, OH
A Tradition of Trust

based on my experience, it is entirely believable. detestable behavior, but believable.

Feb 16, 2018 05:15 AM
Rainmaker
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Tony and Suzanne Marriott, Associate Brokers
Serving the Greater Phoenix and Scottsdale Metropolitan Area - Scottsdale, AZ
Haven Express @ Keller Williams Arizona Realty

Jeff Dowler nailed this one!

Feb 16, 2018 05:11 AM
Rainmaker
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Gita Bantwal
RE/MAX Centre Realtors - Warwick, PA
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel

Sorry.

Feb 16, 2018 04:29 AM
Rainmaker
585,620
Eve Alexander
Buyers Broker of Florida - Orlando, FL
Exclusively Representing ONLY Orlando Home Buyers

Of course it is true...happens all the time.

Most "Lenders" at the bank are paid an hourly rate...and are not licensed professional.

Eve

Feb 16, 2018 03:52 AM
Rainmaker
124,422
Jerry Thomas-Construction Loans
Cranbrook Loans - Farmington Hills, MI
Construction Loans in MI, OH, VA, GA, FL and AL

I use to hear this all the time when I did short sales. Lender says you have to stop making payment for us to consider a modification. Borrower stops making payments, applies for the modification, it denied and borrower is sent to the forecloser department. Sad, wrong, but it happened a lot.

Mar 21, 2018 01:24 PM
Rainmaker
4,440,339
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

I have heard this scenario too, but have not had experience with foreclosures.

Feb 18, 2018 11:07 AM
Rainer
135,518
Anthony Kirlew
Group 46:10 Network @ eXp Realty - Gilbert, AZ
Helping You Make Fiscally Sound Choices

First Rule - Always get it in writing. Typically a bank wont take (or encourage) a partial payment, so it sounds a bit suspect to me.

Feb 17, 2018 08:53 PM
Rainmaker
292,385
Jack Lewitz
IL Real Estate Specialists - Evanston, IL

Typically a lender does not begin foreclosure until someone is 90 days past due .

Feb 17, 2018 08:27 AM
Rainmaker
3,985,587
William Feela
WHISPERING PINES REALTY - North Branch, MN
Realtor, Whispering Pines Realty 651-674-5999 No.

Yup, I have heard of this also...Very misleading

Feb 16, 2018 10:36 PM
Rainmaker
801,404
John Juarez
The Medford Real Estate Team - Fremont, CA
ePRO, SRES, GRI, PMN

If they had obtained professional help instead of relying of the good graces of the lender I think they would still own their house.

Feb 16, 2018 06:39 PM
Rainmaker
504,038
Diana Dahlberg
1 Month Realty - Pleasant Prairie, WI
Real Estate in Kenosha, WI since 1994 262-308-3563

Actually I have had this conversation with a number of clients in the past.  Seems like the banks don't really care to help the homeowners.

Feb 16, 2018 06:11 PM
Rainer
280,818
Caroline Gerardo
Sun West Mortgage Corporation - Newport Beach, CA
C. G. Barbeau the Loan Lady nmls 324982

I've had borrowers tell me that back in 2010 Wells Fargo told them not to make a payment to be eligible for a modification. It's not the bank that told them this. Borrowers got advice from the loan modification sharks that swept the industry 2009-2014 - most now closed shop. The sharks told them to give them $5000 and they would do magic legal tricks, or to make payments to their shark account to avoid foreclosure- all lies.

After a borrower is down three payments a lender won't take partial payments as the file is in collection department. The collection department calls them daily to make payment arrangements or foreclose. They tell the borrower they intend to collect the debt. A lender is not going to take five cents on the dollar when the borrower sends a check for a partial payment- huge fees are added as late and legal charges.

Ask him to show you the check returned to him with the bank letter. I assume there will be no check or letter, it was verbal.

He had options - to short sell or to try and modify (there would be a paper trail of try to modify as well.)

 

They just went through foreclosure in 2018? Was the process maybe years?

In Wyoming, the values have not declined in the past two years to match with they just went through foreclosure. 

Send me the credit report I can tell you the true story.

Would I rent to him?

I would require 4 months deposit in advance.

Is his truck clean?

Where is he living now?

Feb 16, 2018 11:50 AM