Mortgage Company Mensa’s

Let me first say, it usually takes quite a bit for me to let go of a money making opportunity. I mean, if there are problems with a transaction, I will always go the extra mile, or extra hours, to get the job done. I pride myself as a problem solver, and over the past 16+ years have repeatedly saved deals from the graveyard, when it would have been easier to let them die. Creative solutions to transactional problems are just part of the job.

However, mortgage companies have displayed a new level of ineptitude, and quite frankly, I’m done with dealing with them! I understand that mortgage companies are very busy dealing with all the foreclosures, and the fallout that is caused by them. But these idiots get exactly what they deserve.

I have had two transactions in the past 90 days, fall apart because the Mortgage company, just couldn’t get to it! WHAT? They simply didn’t have the time to deal with these two transactions. It’s understandable, that is, if there is a short fuse on something they might have some issues with manpower to deal with an emergency situation. But here is the rest of the story.

The first transaction was presented to the mortgage company in early November 2007. It was a scenario that a foreclosure proceeding was started. We offered them a contract to “unload” the property for a fair value. Seems pretty simple. They had a couple of options; Say YES, let’s go, make it happen, we don’t want the property on our books. Or, NO, we don’t feel the value received from this contract is sufficient, and as a company we think we can do better by taking possession and selling the property on our own.

Well, neither of the options happened. Instead, no response was the preferred reply. Literally, dozens of calls were made, with a substantially similar response each time. “We don’t know yet, we’ll get back to you soon.” Soon to these idiots, means NEVER! The beginning of January 2008 was too long for this buyer to wait out the “highly trained staff” at XYZ Mortgage Co. to give us a simple Yes or No. Heck, a maybe would have been OK. My guess is, the delays from big bank USA, is going to cost it’s shareholders, well over $30,000!

Transaction number two is substantially similar. Different mortgage company, but it seems the same training. “Our Policy is no answer until everyone is so pissed off, that they walk away, and we don’t have to deal with anyone. We can simply sell the property off a major discount, and write off the losses, Hell, who’s going to know how our ineptitude is responsible for big time financial losses!” We are nearly 60 days into the sit and wait process now, and I’m quite sure, the deal will fall apart before they get us a pretty simple “YES or NO” Unfortunately, this deal is above market value, and should be a no brainer. Guess what business school rejects? This little delay will cost you a minimum of $30k-$50k, when you try to wholesale it to the investor community!

I could continue to rant for many more paragraphs, but will comment on how I would like to see the problems dealt with and the bottom feeding “foreclosure specialists” in a future post!

I will leave you with this, Don’t become a shareholder in any mortgage companies, the management and training are a recipe for disaster (unless, of course, the real estate market starts appreciating at double digit rates again!)

All investors looking to take advantage of the Mortgage Company Mensa’s, contact the Get Home Denver Team today!

Feel free to comment on the mortgage debacle!