Lie Lie Lie!
So is it shocking to you that banks would lie? Didn’t your client tell an untruth or two for the first few months when they didn’t make the payments on their homes?
I do not lie, it is my horrible weakness. No matter how far I’ve evolved, I shoot from the hip and tell the truth when directly questioned. I aspire to create a filter that will allow me to temper this feature on me but to date I have failed to keep it in check. Perhaps it’s from the years of collecting on assets and lying to homeowners, agents… The carry over it dragged into my failed marriages… I will never know why I’m incapable of not lying today or at the very least tempering the truth to be palatable.
Banks LIE! Oh, I am sure there are bank processors that believe what they are telling you, but at the end of the day it’s a filtered down lie created through horrible misdirection.
OK, there are three places to take money on a file…all three require lying to get it. Money can be obtained from the buyer, the seller and the agent’s commission.
It’s not difficult to break this down:
To obtain money from the buyer, all you need to do, if you are a bank, is disagree with the fair market value and tell the listing agent you think the property is worth more money than it actually is. Consistently this will cause the agent to go to the buyer and ask him to raise his offer.
To obtain additional money from the Seller the bank will lie and offer a loan modification in exchange for disclosure of personal assets or the listing agent will submit too much information about the seller, thereby making it easy for the bank to ask for those funds.
Finally, to get the listing agent’s commission, the bank will lie about phony guidelines that do not exist or claim an ‘investor’ or anything else that will work at negtiation time.
I am convinced that negotiations have gotten so bad with agents that I could work at a bank and tell an agent that “Aliens have taken over the bank and I am now required to ask that you submit a human kidney with your HUD.” Somewhere there is an agent that would probably agree to the deal.
Someone asked me today, when do you know when the bank is lying? I responded “The minute you pick up the phone and start talking to them.”
Every finite rule and guideline I have ever encountered on an asset can be bent on the bank’s side. I have seen them bend, break and/or remove anything and everything that could be considered a finite bank guideline. From pre-payment penalties to commission pay-offs, I have seen management override “investor” guidelines to “corporate” guidelines. Because, maximizing the assets return is the most important agenda at in a bank.
At the end of the day this is just a glorified debt collection.