Just another tale of woe from the Kingdom of Short Sale Land. We had a deal pop up the other day that I felt was worth sharing with you guys this week, as it has finally been resolved.
So I will set the stage for our little Greek Tragedy. About two months ago we opened escrow on a quaint condo in the West Valley of Maricopa County. All cash deal, seemed pretty straight forward. But here is where our story takes a turn for the worse and becomes a little unclear. The lender behind scenes is a big one, I’m sure you have heard of them but for now lets just say the Evil Bank of the Universe. Well they claim to have never received an Arms Length Transaction Agreement and wouldn’t you know it, the Agent claims it was never in the package sent from Bank of …er, I mean the Evil Bank of the Universe.
Of course this presents a problem because it is not an Arms Length Transaction and so they could not have filled it out, even if it were received. In our final package from the Bank, no mention of this document is made to us, so we close and record the transaction.
Six weeks later, we receive a call from the Evil Bank of the Universe saying they never received the Arms Length Transaction Agreement so if we could just go to our file and pull it for them, that would be great.
Or response…we don’t have one in the file, so we ask the Agent. Sure enough, they never saw one either. More to the point, the Agent has an email stating that this transaction is NOT at Arms Length so their clients would be unable to complete this form. – Have you ever been on a phone conversation with someone and they ask you a question and as you are answering the question, you realize you could not have given a more wrong answer? That was this moment. The Bank employee’s only response “O” long pause, “I’m going to have to check with my Manager and get back to you” and hung up on us. Keep in mind we closed escrow six weeks ago. Had this not been an all cash deal, the first payment would have already been made on the new mortgage.
Two more weeks go by and the Evil Bank of the Universe lets us know that they have decided to return the wire and we need to unwind the transaction… eight weeks after we go of record.
Moral of the story here, just because they did not send it the first time, doesn’t mean they won’t ask for it later, much later in this case. With veiled threats of mortgage fraud, all parties thought it best to not upset the Evil Bank of the Universe and unwind the transaction. So eight weeks after the fact, this deal became an undeal and is back on the market… So if anyone wants to buy a cheap condo in the west Valley, I know of one.