Sarasota real estate functions differently today, leaving many sellers questioning how to overcome #2 reason (their) houses don’t sell!
Sarasota homes for sale require luck and divinity for short sale success!
Short sales don’t go as planned!
I repeat, short sales don’t go as planned.
You can do everything possible to help your competent, short sale savvy listing agent sell your house to avoid foreclosure.
Instead, your house falls into foreclosure.
Top reason #2 your house doesn’t sell is that it’s a short sale!
image source
2. YOUR HOUSE IS A SHORT SALE. By no fault of your own, your house might not sell as a short sale.
- Many buyers do not want to see properties listed as short sales.
- Many buyers’ agents do not want to show houses listed as short sales. No guarantees exist for buyers submitting offers on shorts. Buyers and buyers’ agents do NOT like short sales.
- Banks force buyers to wait months for the bank to reject a 100% fair market offer with no requested concessions. Buyers are making very fair offers and banks are rejecting their offers, after forcing buyers to wait without word for months.
It’s gotten so bad many buyers’ agents delete all short sale listings so their customers (buyers) never see these ‘short sale’ listings.
Problem: Banks require borrowers (sellers) and realtors to play guessing game regarding value of property and whether bank or secondary market investor (debt owner) will accept short sale at 100% of value.
Case Study: Virtual Bank Forces
Retired, Elderly School Teachers
Into Foreclosure…& Bankruptcy!
Case Study: For more than 2 years, I tried to help retired school teachers avoid foreclosure (and bankruptcy). Until I encountered Virtual Bank of Palm Beach, FL (a subsidiary of Lydian Private Bank) and Chief Debt Collector Mr. Douglas Jennings, I successfully had helped many borrowers avoid foreclosure.
Unfortunately, this one didn’t end well.
This property was an “investment property.” Without doubt, the retired school teachers made a huge mistake buying the property. They also realized a bank (or debt owner) was under no obligation to approve a short sale, regardless of fair offer.
Repeatedly, I had submitted 100% fair market offers to Virtual Bank. Repeatedly, Virtual Bank refused FMV offers with no counter offer, despite solid evidence to support offers.
NOTE: I repeat, the borrower and I clearly understood Virtual Bank was under no obligation to approve any short sale offer or forgive deficiency if otherwise approving short sale (that is, lien release only).
I also fully admit I didn’t then (and I do not now) know banking. For all I know, Virtual Bank is receiving bailout money to cover the continued losses, as property continued sliding in value and condition. That is, this property had DROPPED $65,000 (perhaps even once it was all said & done) off FMV (fair market value) when I initially submitted a buyer’s offer to purchase:
- Horrible landscaping. St. Augustine grass has burned away. Plants died months ago.
- Roof Leak. Roof leak destroyed ceiling drywall near entrance, most definitely creating mold issue in FLORIDA’S heat & humidity with NO a/c to property.
- Water Intrusion. Leaky windows have resulted in constant water intrusion in bedrooms.
For months, I called and emailed, called and emailed without ‘yes’ or ‘no,’ though finally I was directed to Mr. Jennings. Yet, repeated calls/messages to Mr. Jennings yielded no response.
At that point, the borrower requested I try contacting different decision makers within Virtual Bank. With that, I copied all executives whom I could find affiliated with Virtual Bank and Lydian Private Bank in hopes someone would help mitigate further LOSS (to bank and borrower).
By that time, these retired school teachers saw little hope with Mr. Jennings, whose antagonistic demeanor made it clear he didin’t want to consider a fair offer/resolution. Therefore, these teachers reluctantly sought advice from several bankruptcy attorneys.
Short Sales Are Not Guaranteed!
Bottom line: a short sale might not be the best solution. Additionally, short sales are not guaranteed, even when you can prove hardship. You also are not guaranteed you will encounter professionalism from bank employees – most bank employees are very professional. In all my short sale work, I’ve not encountered a more contentious individual than Mr. Jennings – and that’s a mouth full.
Indeed, I’ve never experienced a more frustrating short sale (attempt) than with Virtual Bank. Actually, front-line people with Virtual were very cordial. Only when Mr. Jennings stepped in did the tone take a 180 – Mr. Jennings was condescending, unrealistic & mean-spirited. In many instances (proven with email correspondence) Mr. Jennings’ behavior became very unprofessional, especially when Mr. Jennings believed I went over his head to executives with Virtual Bank and Lydian Private Bank.
Did I attempt to go above Mr. Jennings’ head? No! I attempted to do all I could to help a borrower in distress and a bank mitigate further loss for its institutional investors. I would do the same again and again and again.
Today’s real estate market demands cooler heads prevail. Apparently, Virtual Bank’s top-level executives condone Mr. Jennings’ less-than-professional behavior, not to mention the Mr. Jennings’ inability to mitigate further loss (or so it seems to someone obviously not a banker).
What is your experience with a short sale or avoiding foreclosure? Perhaps you’re angry investors (retired or not) are trying to get out of their “moral” or contractual obligation to repay debt. Whatever your comments or questions, go below to leave your questions, comments or experience with foreclosure or short sale. This is top reason #2 your house might not sell in today.
Call me now if you have specific questions about avoiding foreclosure. If my experience can help you or someone you know facing foreclosure, I will do my best. Whatever you, please talk with an attorney and tax professional informed on foreclosure defense and tax implications.
Sarasota real estate owners trying to avoid foreclosure by short selling may or may not get a smooth (exit). I hope you don’t experience someone like Mr. Douglas Jennings of Virtual Bank. No borrower, real estate agent or 3rd party loss mitigation negotiator deserves to face a guy like Mr. Jennings.
{ 9 comments… read them below or add one }
I just encountered recently a very unpleasant experience with that D. Jennings from Virtual/Lydian Bank. The guy insulted me, made fun of me and kicked me out of his office. ( I have witnesses)
He ignored an all cash offer WAY ABOVE market value which would have provided all the money he wants. Now. He demands the money from me, the seller ” or else”….foreclosure !
He basically knew nothing about my distressed situation, and could care less.
Now that the CEO of Lydian is gone, I pray Jennings will follow quickly through the most direct ( and widest ) exit door. Stay tuned, that bank will go down soon.
He is just a Bank puppet who hates his job.
Wow!!! I type in Doug Jennings Virtual Bank and here we are!! I can’t even sum up my experience with Mrs. Jennings, not enough time in the day! This man is a class act scum bag, A-Hole to say the least!! Dealing with Virtual bank on my short sale was never a problem, until getting Miss Jennings on the line.
I find it hard to believe that anyone has ever had a reasonable experience with this idiot!
I’m sorry to hear of your horrible experience, John. Apparently, Virtual Bank’s owners/investors are OKAY with Mr. Jennings causing them to LOSE $100s of $1000s. On one short sale where I encountered Mr. Jennings and Dan Downing, both behaved more poorly than on any other short sale (over 100) that I’ve been involved.
When Virtual Bank demanded unrealistic terms, SELLER simply filed for bankruptcy and forced Virtual Bank to EAT about $80,000 MORE than if it had approved the short sale. I guess Virtual Bank’s owners/investors are OKAY with its employees losing its money.
I never will work with Virtual Bank or Lydian Bank ever again. Not long ago, a good friend worth A LOT of money to invest asked me if I knew anything about Lydian Bank. I shared my experience and he chose not to place his money or trust in Lydian. Word travels pretty fast today.
You see, Mr. Jennings and Mr. Downing have every right to reject a short sale, even if rejection appears to HURT the bank. What I NEVER will forget or forgive is the UNPROFESSIONAL MANNER in which Mr. Jennings and Mr. Downing behaved. I have written proof of what I’m saying. Perhaps some day Virtual Bank’s owners will stumble across this webpage and read how its bank’s name is being defined for people throughout the world.
Good luck to you, John.
As it turns out Mr. Jennings actually did a very good job meeting our needs and was very reasonable today when we spoke. I think the main thing we need to all remember is that short sales are like fingerprints, no two are exactly the same. Keep your chins up and continue trying to help your clients. thanks for the networking.
Excellent! Thanks, Dennis, for reporting such good news. Hopefully, your end result will encourage others with mortgages owned or serviced by Virtual Bank.
Mike
Your post caught my eye as I currently have a short sale “ABOVE” fair market value here in California with none other than Mr. Douglas Jennings and he is refusing to budge wanting 200k up and beyond the buyers offer which as I mentioned is already above fair market???
Thanks, Dennis, for commenting. In California, you have different foreclosure laws…correct? Do you have a non-recourse purchase money mortgage? Am I hearing correctly that many CA attorneys advise borrowers to let the house go back to the bank?
Regarding Virtual Bank & Mr. Jennings, I realize Virtual Bank (or any other bank) is under no obligation to consider short sales or forgive debt.
However, it’s Mr. Jennings’ demeanor that confuses me. To be a debt collector, a person doesn’t have to be an A-Hole. Mr. Jennings’ unprofessional manner exceeds even that of a typical debt collector’s threatening, abrasive & unprofessional demeanor. I have to face many debt collectors (even the NCO Financials of the world). Mr. Jennings personally attacks, even 3rd parties like me who are trying to help mitigate further loss for a debt owner.
Perhaps Mr. Jennings and Virtual Bank have discovered a way to benefit its shareholders by rejecting FMV offers, only to allow properties to plummet an additional $50,000 in value as the borrower discharges debt in BK. Are there more “sweetheart” taxpayer bailouts giving more money to Virtual Bank, et al of which we taxpayers are not aware? Or has Virtual Bank chosen to play hardball, hoping borrowers will not BK the debt away?
I don’t know. I don’t pretend to know the banking business.
What I do know is that if I encounter another Virtual Bank mortgage, I will excuse myself from a listing & strongly urge the borrower to seek an attorney’s help even quicker than I normally do.
I wish you well, Dennis. Please update me. I hope your situation works out for you.
Mike
P.S. Since this post published, I have heard from more than 20 people sharing a similar experience with Mr. Jennings. It was not the bank’s position that most angered people; it was Mr. Jennings’ alleged (unprofessional) behavior that upset people. Unfortunately, many people choose not to put their honest (non libelous or non slanderous) experience in writing. Good luck.
My aunt is having a same trouble with Virtual Bank and Mr. Doug Jennings far less then professional behavior. She could not sell her property short sell and is very frustrated with her lender. They are constantly harrasing her, even at work, to the point that her boss picked up the phone and told them not to bother his employees during work hours with personal matters. Even then, they kept calling her with bloked number. She now wants to re-instate her loan and pay up her payments. They told her that they’ll waive her late fees if she pays right away. They did not give her couple hours to transfer her money between her accounts. When she called the next day, they added 4-5 thousand dollars as late fees and attorney fees. If she doesn’t pay that, Mr. Jennings told her that she’ll see a city inspector at her door in 2 hrs. Not sure if thats a threat or just moking her. Do you know where we can file a complaint about these people? I think my aunt needs a long time therapy after this process.
I’m sorry, Nasan, to hear of your aunt’s struggles…especially with Virtual Bank. Of course, what other behavior should a person expect from Mr. Jennings, a debt collector? He appears to behave just as ALL other debt collectors behave.
Does your aunt have an attorney? If not, she should get an attorney immediately. Tell me where she lives, and I’ll try to point her toward an INFORMED real estate attorney in her area. Before she pays a penny, she should talk with an attorney.
She certainly can (and should) file complaints with the FTC (Federal Trade Commission) to start. However, before she files complaint, she needs to save her home and not just hand over money.
BTW, foreclosure in Florida (if your aunt is in Florida) takes time – it’s not as simple as a “city inspector” showing up at her door. Did he really say “city inspector?” In Florida AFTER foreclosure, there’s still an eviction process to get tenants out.
It’s not just a knock at the door and you’re out.
Thank you for sharing, Nasan. I hope your aunt is able to save her home.
Mike