I'm pretty sure servicing companies flat out LIE to the banks...... - REO Property Preservation Forum
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post #1 of 11 (permalink) Old 10-27-2012, 10:18 AM Thread Starter
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I'm pretty sure servicing companies flat out LIE to the banks......

My proof is the many homes i have been getting lately that are teardowns.

Had a HUD in August. 1902 victorian. Knob and tube wiring, Galvanized plumbing all leaking, Foundation crumbling and home leaning on one end. Still had to "sales clean it" Property closed 2 weeks ago and is being demo'ed.

Had a dump in a pudunk town 120 miles west of me in September. Average home in LIVABLE condition brings $30-$40,000 in this town. Home is in demo condition, Rats and mice infesting it, Totally trashed, 2 torn up mobile homes on the property, It would take a crew of 4, 2-3 days to "clean" it and it would still look like chit. Myself and the agent assigned have both said to demo or sell as is. Nope!!! Gotta trash it out and sales clean it!! Middle of winter here now, No electric as there is a $1200 past due power/water/sewer bill with the city, Will have to wear Hazmat suits, (guess that will keep my guys warm?) Ect. Trashout, trailers, sales clean is going to run them $12,000. They will be lucy to get 20K for it in the end clean or not. If they don't like it OH WELL! Same company that wants to pay me a $1,200 trip charge to do a property 750 miles round trip from me.

Got another one pretty close to me. Have done 3 Line X Lines in 2 years. 1920's 900 Sq Ft Farm house, NO LEGAL foundation (fieldstones sitting on top of the ground that are crumbling). Pipes broken to hell. House WAAAY out of level due to fieldstone foundation, Roof decking rotten under tin roof, Lead Based Paint in and out, All windows and doors shot, No insulation. Value is in the lot. (realtor and appraisal state house as having NO VALUE) 4.5 Acres and a nearly new 2 car shop with 10' doors and a heated floor. Lots that size are selling for 60-80K. My bid was $69,000 to pour new foundation, replace roof, replace windows, replumb, Re-mediate LBP and in the end it's still a 1920's 900 Sq Ft farm house with little value. By the time the bank gets this bid it will be nearly $90,000. The last list price on the house AS IS was $109K. Get a work order yesterday to find plumbing leaks for $125 and bid to repair. The bank is into it for $182K LMAO!

Got another one, 1st trip i made to this property was 10-12-2009 Issues have been noted OVER AND OVER AND OVER again. Property is in a VERY wet subdivision, (A filled in swamp that was built out during a VERY dry year.) Nearly EVERY home has water issues here. There are MANY lawsuits against the builder. At this time, either the the home has settled in the mud or the floor has heaved from pressure of the water below. There is water coming up in the cracks of the floor. The middle of the basement is nearly dry while there is 2+ inches of water around the perimeter. There are no sump pumps or sump pump basins in the basement. Only a sump pit on the exterior of the house. I told them they need to hire a STRUCTURAL ENGINEER as a general contractor such as myself is not qualified to determine the full extent of the damage. (Engineer will run ROUGHLY$4,000 to $5,000 and my off the cuff estimate of what i think is needed for repairs is around $25,000) The entire stairway, stairway framing ECT. is full of BLACK mold. The engineer needs to make their recommendation BEFORE the mold can be addressed as mold will keep coming back as long as water keeps intruding. All floors in main level of the house are warped and there is a high moisture level in the home. Off the cuff estimate to replace all floating wood flooring and underlayment after remediation, $6,000) There are also mold spores throughout the house. (off the cuff mold remediation throughout home including basement, $15,000)

It just seems to me the servicing companies are lying to the banks telling them "We can fix this!" What a waste of money not to mention a pain in the arse.....................
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post #2 of 11 (permalink) Old 10-27-2012, 10:51 AM
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I've said since 09 when I got back in the industry that I was certain the service companies were not giving the bank the info we get in the field and submit on their vendor web systems.


How else do you get an over grown lot thats 5 days from going into violation when the contractor is there and then goes on to be allowed to go into violation? The contractor sends in his bid and then nothing, the property is given a violation fine from the city and they let their pet contractor bill what ever his little heart desires for the mowing and then add on all their admin fees the bill the bank has to pay in order to even sell the house is now in the low 4 digits when the bid for me to mow it was 300 or 400. A month later the contractor gets an immediate rush w/o to drop every thing and get to the property TODAY because its in violation and upon arrival finds that its been mowed for at least 3 weeks..... by the city.

OF COURSE they aren't giving the bank the info.

And your examples prove it too.

Professionals are people who can do their job when they don't feel like it.
Amateurs are people that can't do their job even when they do feel like it.
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post #3 of 11 (permalink) Old 10-27-2012, 01:59 PM
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Originally Posted by BPWY View Post
I've said since 09 when I got back in the industry that I was certain the service companies were not giving the bank the info we get in the field and submit on their vendor web systems.


How else do you get an over grown lot thats 5 days from going into violation when the contractor is there and then goes on to be allowed to go into violation? The contractor sends in his bid and then nothing, the property is given a violation fine from the city and they let their pet contractor bill what ever his little heart desires for the mowing and then add on all their admin fees the bill the bank has to pay in order to even sell the house is now in the low 4 digits when the bid for me to mow it was 300 or 400. A month later the contractor gets an immediate rush w/o to drop every thing and get to the property TODAY because its in violation and upon arrival finds that its been mowed for at least 3 weeks..... by the city.

OF COURSE they aren't giving the bank the info.

And your examples prove it too.
You mean to tell me there are dishonest people in charge of large contracts? Stop lying. That's like calling Obama a socialist. I won't stand for this! LOL
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post #4 of 11 (permalink) Old 10-27-2012, 08:31 PM
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Admit it. You like drinking fuzzy navels with obummer and close dancing with the wookie.

Professionals are people who can do their job when they don't feel like it.
Amateurs are people that can't do their job even when they do feel like it.
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post #5 of 11 (permalink) Old 10-27-2012, 08:49 PM
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The wookie ain't ready fo dis jelly.
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post #6 of 11 (permalink) Old 10-27-2012, 11:28 PM
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Originally Posted by BPWY View Post
I've said since 09 when I got back in the industry that I was certain the service companies were not giving the bank the info we get in the field and submit on their vendor web systems.


How else do you get an over grown lot thats 5 days from going into violation when the contractor is there and then goes on to be allowed to go into violation? The contractor sends in his bid and then nothing, the property is given a violation fine from the city and they let their pet contractor bill what ever his little heart desires for the mowing and then add on all their admin fees the bill the bank has to pay in order to even sell the house is now in the low 4 digits when the bid for me to mow it was 300 or 400. A month later the contractor gets an immediate rush w/o to drop every thing and get to the property TODAY because its in violation and upon arrival finds that its been mowed for at least 3 weeks..... by the city.

OF COURSE they aren't giving the bank the info.

And your examples prove it too.
Did you get paid for the mow job? Or did you just charge trip?
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post #7 of 11 (permalink) Old 10-27-2012, 11:59 PM Thread Starter
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Did you get paid for the mow job? Or did you just charge trip?

Can't get paid without before pics. You COULD take duplicate pics when bid but whats the chances of an inspector taking pics after it was cut by the city and you get busted for fraud???
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post #8 of 11 (permalink) Old 10-28-2012, 06:49 AM
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It just seems to me the servicing companies are lying to the banks telling them "We can fix this!" What a waste of money not to mention a pain in the arse.....................[/QUOTE]


Hey Mtman... does it realy make a difference in the gradn scheme of things. I value yout altruism...but what's one man's waste is another's gold.
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post #9 of 11 (permalink) Old 10-28-2012, 09:55 AM
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I had a talk with a very high up at citi about this about year ago, he called me because a local inspector called them to thank them for a property we serviced for them. We put 60k into a property worth at best 50k. We he called I asked he this same questions and he said if its a fha loan they can't demo it, it has to be fixed. In order to quality for a fha loan the house has to be inspected and approved in order to write the note, during the high times they just had to many loans to inspect and some fell thru the cracks and this is why you got some complete dumps.

I love fixing the dumps, I do complete rehabs on at least 10 a year and they are money making machines
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post #10 of 11 (permalink) Old 10-28-2012, 09:56 AM
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Originally Posted by Backwell View Post
Did you get paid for the mow job? Or did you just charge trip?


What do you think?


And before you answer keep in mind that I AM NOT a hack.

Professionals are people who can do their job when they don't feel like it.
Amateurs are people that can't do their job even when they do feel like it.
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