There is an asset manager at SunTrust Bank that should be fired immediately. This bank took billions of taxpayer dollars in bailout funds while one of their asset managers is costing them untold amounts of money by practicing some of the most idiotic practices I have ever heard of. Let me explain what brings me to this conclusion…
On June 1, 2009 I assisted a client by preparing an offer on a foreclosed property located at 2002 Alderbrooke Ct. in Lawrenceville. The property was on the market for $184,900.00 and we offered $170,000.00 and asked for seller contributions of $5,100.00 toward closing costs and the buyer was to put 20% down. The counteroffer we received was to raise the purchase price to $184,900.00 (List Price) and removed all of our stipulations for a home warranty, repairing wood rot, repairing an obvious water leak and disallowing a prequalification from a qualified lender (Per the listing agents office, this asset manager requires that for any closing costs to be contributed by the seller the buyer must use SunTrust Bank as their lender for the mortgage). As this saga continues and through further negotiations my client has raised his offer to $180,000.00 with seller contributions to closing costs to be $4080.00 which was countered at $180,000.00 with no closing cost contribution. We countered with $182,000.00 with $4,000.00 in closing costs, splitting the difference so to speak. The reply and subsequent counteroffer from the asset manager blew our mind. The counter offer was at $182,000.00 with no closing cost contributing. At this point my client just threw up his hands in disbelief and fortunately went to Florida to attend to his father who was a bit under the weather.
Let’s jump ahead into July. My client is back from Florida and low and behold the property at 2002 Alderbrooke Court has been through a price reduction and is now listed at $164,900.00. My client has conversation with a loan officer at SunTrust REO Division and is promptly preapproved as before. We make an offer at $164,900.00 with $5,000.00 seller contribution towards closing costs and guess what happens? You guessed it; the offer was accepted as written on July 14, 2009.
Had this asset manager accepted our offer at $182,000.00 with $4,000.00 closing cost contribution the bank would have been $18,100.00 better off and the transaction would have closed a month earlier also saving the bank a month’s expenses of managing the property. I am tickled for my client and feel as though he got a fantastic deal on a foreclosure home, but I have to ask myself do the actions of this asset manager really make sense for the bank? I hate seeing my taxes wasted bailing out a bank that is employing idiots that can’t see the forest for the trees.
{ 11 comments… read them below or add one }
Asset Manager could also be getting bad advice from a Realtor.
More likely scenario, they were negotiating with multiple buyers and managed to run every last one of them off at the time. Which makes them look infinitely more incompetent.
“Asset Manager could also be getting bad advice from a Realtor.” I don’t think so. The REO agent’s office on this file told me that this asset manager was one of the most difficult that they work with.
“More likely scenario, they were negotiating with multiple buyers and managed to run every last one of them off at the time.” In the first go around on these negotiations there were no competing offers on the property. On the second go around there was another offer but the buyer was not qualified through SunTrust.
All in all I am tickled for my client who thanks to this asset manager got a fantastic deal on this house.
I am also in a simmilar situation with SunTrust with my buyer!! Does anyone out there have a direct number for one of these asset managers???? This process is CRAZY!!!
It could be 1-800-STUPID!
We have had this happen to us, also (not with SunTrust, tho’). And a couple of our many Asset Managers are REALLY difficult and condescending to deal with, they think they know everything about everything and are all high and mighty. Certainly I can understand their frustrations having to deal with who knows how many Realtors who are truly incompetent… but when an Asset Manager comes across those agents who do know what they are doing, they should give more weight to their opinions and recommendations. We even had one who was not responding over several weeks and when we pushed for some response, she said “I don’t have time to read your comments” … when she then finally did read them and lowered the REO’s list price to what we had suggested nearly two months prior ~ we had a contract offer in less than a week, which was essentially accepted by the bank within 24 hours. But there ARE good Asset Managers, too, and when we have one who is really a team player, it is indeed a pleasure. And I know of what I speak with over 30 years handling troubled assets myself; including running one of our state’s largest residential REO departments in the 70’s and countless 10’s of million of square feet of institutional problematic commercial assets in most states east of the Rockies… when one of these wet-behind-the-ear know-nothing ‘Asset Managers’, tries to flex their almighty muscles, I can only cry… I’d laugh at the situation, except for the seriousness of your and my tax dollars which have and are paying for much of this arrogance.
Charles~Thanks for stopping bye. I agree totally with what you are stating. Just as a good REALTOR is worth his weight in gold so is a good asset manager. The problem in this instance was that the asset manager was so busy flexing the almighty muscle and pounding the proverbial chest that what was in the best interest of the bank had to take a back seat to the ego.
I had a Suntrust short sale under contract for over a year. They did absolutly nothing about reacting to the offers. It ended up with 4 buyers walking away because of their inactivity. My last buyer had the property under contract for 4 months and Suntrust forclosed on the property with a full list price offer in hand.
Michael, I think some of these asset managers could screw up an anvil.
I am currently dealing with 2 lazy NC Realtor s and Suntrust Bank who is left clueless about the property they bought at auction last year for $339K. The listing agent promtley listed the property at $409K after turning off the power to the house. This caused a pipe to bust and flooded the finished basement with 3ft of water. Yes 3ft of water. Now its summer in NC and mold is everywhere in the basement. Current property in the area valued at $600K is selling for $399K. This should tell both listing and selling agent a story but apparently it does not. I do not think the bank is aware of the flood that occured or how much the house has been devalued by it. I love the house but will not pay the current asking price of $360K. I made an offer at $250K and they countered with $355K so I am positive the bank does not know what is wrong with the house. My realtor is lazy so I have engaged in conversation with the listing agent who is not that intelligent either. I was asked to submit a mold report that I paid for but I will not unless they want to buy it from me. I think I am being generous with my $250K offer and will stand by it or they can keep the house. Is there anyway to get around the listing agent to ensure the bank knows the true value of the house? I would hope someone wakes up on this deal as qualified buyers are in short demand and another housing crash is right around the corner with all these arms coming due.
Jeff~You may want to rewrite your offer including a special stipulation that the seller is required to warrant that all mold has been removed from the entire home including the flooded basement. At least this should get to the negotiator at Sun Trust.
I am so sick right now!! I have worked really hard on a shortsale listing with Suntrust bank. Only to loose 4 buyers waiting on lender approval!! If you perform and the lender drops the ball, why are we not offered anything for our time and money spent listing the shortsale. I am just simply aggrivated and looking for some answers.