Sellers complaint: “Why won’t my lender talk to me?”

(Riverside, California)…OK, so times being what they are these days in the real estate market, many sellers have fallen behind in their payments, thusly necessitating a phone call to their lender.  From the sellers standpoint, the purpose of the call is to try to make a plan that benefits both the seller (new payment structure, etc.) and the lender (let’s work together so you don’t have to foreclose and wind-up with a house you don’ t want).  Unfortunately, the phone call only adds to the sellers frustration because all they accomplish is to get blown-off by a number of recorded messages and voice mails, and if they luck out and get a live body, there is a very good chance the person on the other end of the line does not speak English very well and cannot help them…..so they end up screaming into the phone…WHY CAN’T I GET MY LENDER TO JUST TALK TO ME?

Well, in many cases, here’ s why.

When you or any buyer gets a real estate loan, it’s not like what your parents got.  They went to the local bank, spoke with Banker Bob (who they knew from Rotary, Little League, Church, etc), and they eventually received their loan from one of the few community banks in their town.  Mom and Dad then made their payments, and if there was any trouble at all, they went back to Banker Bob to work it through.

Today, the lending industry is about as faceless and devoid of humanity as is humanly possible.  In your case, you probably got your loan from a mortgage broker, who was representing one of a number of banks, who then placed the loan with the bank with the best loan program for both you and the mortgage banker.  This ultimate bank then put your loan together with about 100 others and sold it to some wall street broker, who then sold it to some giant corporate insurance company, or foreign bank, or stock market brokerage company.  This ultimate end-holder of your loan then completed this faceless process by hiring some non-descript loan servicing company to collect the payments from you, keep some for themselves, and forward the balance off to the corporation…where the faceless corporate bean counters deposited your monthly check and patted themselves on the back for their brilliant investment in the always appreciating American real estate market.

Of course, we now know that what goes up will eventually come down (actually, we knew this when we were 10 years old, but have to re-learn it as we grow older)…and when real estate market changes, and the perverbial “you-know-what” hits the real estate fan, you are now a home owner who simply wants to talk to your bank to try to create a win-win situation for everyone….EXCEPT NO ONE WILL LISTEN.

Welcome to the world of real estate lending. 

The bottom line here is that you can yell at the person on the phone all you want, but it really isn’t their fault.  They were merely hired to take your payments and send them off (minus their cut) to the investment firm.  And since the investment firm has no clue about how to make or modify a real estate loan, their bean counters are useless as well to help you with your problem…and your original loan broker cannot help you (if they are even still in the business) because they were only packaging the loan for the lender they put the loan with…the same lender that sold the loan almost immediately after it was created.  SO…your frustration grows as your financial situation deteriorates, and you are left screaming into your phone.

What can you do?  Many times, nothing.  Sorry…that sounds cold, but it is the truth.  The entire process has become so far removed from any human or logical element, that the end result is a mess for you and the ultimate end holder of your note.  I know this is not what you want to hear, but it is the sad truth and comment on our vicious and profit-oriented lending world…which is perhaps why Westcoe Realtors does not have a lending operation.  It is simply too faceless for us to stomach.  We deal with this every day with our clients, and the inhumanity makes us sick…not to say crazy as well.

However, sometimes, with Ghandi-like patience a persistence, you can get through to someone who may have both the power and ability to help you.   The above scenario is a generalization, and not applicable for every loan, and you may be one of the lucky ones who actually has a loan held by a bank…a bank that understands the problem you face and can help.  If that is the case, then you can thank your lucky stars, and possibly find a way out of the maze. 

If not, and least you now may understand why you cannot get an answer from your lender…in which case our advice is to continue screaming into your phone, for at least that gives you a small, albiet temporary primal release from the frustration of today’s lending business.  We feel your pain, and wish it was better…and if you call us maybe we can help.  If not, we will at least be a voice that speaks English, and we will offer a sympathetic ear to help you vent some steam.