Replies to This Discussion

Permalink Reply by Thom Colby CA Brkr 888-391-5245 on May 15, 2011 at 2:56am

Harry is absolutely correct.

 

Here's my take; 9 months is a lifetime - it's time for you to move onto another property.  I am sure there are plenty of other homes around that you will love just as much and you may get a nicer home for a better value.  Stop wasting your energy on this one.  If you have money on deposit, get it back ASAP and start looking again.  We are having a "Triple-Dip" here in CA and likely that's elsewhere in the nation as well so maybe it was a blessing this one didn't happen.

 

Last words, if a bank is not responding with "some news" in 2 - 3 months, it's not going to happen - cancel and move on.

 

Best of luck - you will find your dream home and be settled-in soon,

 

Thom Colby

Broker

Newport Beach CA

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Permalink Reply by Lydia Santa Cruz on May 15, 2011 at 3:50am

Hello

I am a California Realtor that had condo  listed for 458 days (the longest in my 30 year career). The first and only mortgage was with Flagstar It was an FHA loan. We listed high, got an immediate offer, got an approval after about 3 weeks, and the buyer walked. After that, we had a total of 3 offers that were presented and sent to the bank for approval on a new buyers. The bottom line: it took 5 months to get a response on an offer that was submitted before the one we closed on.

 

During this entire time, the bank did NOT file a notice of default on my seller because she continued to provide monthly bank statements and they continued to consider her for a loan modification. She was denied. 

 

When she was denied, her file became qualified for consideration for her short sale (DOH). She was given written permission to do the short sale, and a given period in which the home needed to be sold (6 months) or a notice of default would be filed. Normally a notice of default can be filed within 90 days.

 

Her last payment was made in September of 2009, and we just closed her escrow in April of 2010. No notice of default was filed because she continued to be in their 'good graces' .

 

Every one at Flagstar in the Loss Prevention department was considerate and believe me, completely overwhelmed. No one absolutely no one will give you a definite answer as to when anything will be accomplished as they simply do not know.  My feeling is that there is a lot of pressure to keep the home from being foreclosed on from the investor, and that in delaying the process the loan servicer (Flagstar) continues to get paid a monthly servicing fee by the investor (Fannie Mae). 

 

All communication was done via fax until the final email was sent to the negotiator. 

 

The bottom line:

Maybe this home is not the one that is meant for you Elizabeth. Perhaps there a a better one, right around the corner. Breathe-the right thing will happen for you. It always does.  

 

Lydia Santa Cruz, Realtor

Walnut, CA

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Permalink Reply by Silvia Sanchez on April 9, 2012 at 8:12am

Hi Lydia,

Sounds like you had a good experience with Flagstar bank. I have a listing with them and my experience with them has been a nightmare. I feel that they never had the intention of allowing a short sale and they denied my clients the loan modification. Every time I called customer service it felt like they were lying to me, they would go over the paper work again and tell me every single time that the file was incomplete and to send the same paper work all over again. Every 30 day days we sent them updated financial for over 7 months. The loan has 3(husband, wife and son) people on it and one week they would tell me that the loan had only two people (husband and wife) on it and why am I sending them information on the third (son) and then the next week I would talk to them and they would tell me that I need to update the paper work on the son because he is on the loan! I have buyers for this property and they just denied the short sale and the house will go into auction. I makes me mad because I have been working in this file for so long and my clients must feel like I let them down. I FEEL LIKE I  LET THEM DOWN.  I could never speak with the short sale department because customer service and one supervisor I spoke to told me that the short sale department DOES NOT TAKE INCOMING CALLS. I have never heard of a bank department refusing to speak with their clients.

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Permalink Reply by Michelle Risser on May 15, 2011 at 7:25am

Elizabeth,

 

Unfortunately the banks pretty much do what they want...when they want.  The rules and guidelines change all the time and no two short sales are exactly the same.  Some banks are more cooperative than others.  Some of the things banks do make no sense to the parties involved.  There are also "investors" involved in the background and there may be unforseen guidelines that the investor requires.

 

I am a Realtor and Broker in Southern California and I always tell my buyers not to get their heart set on a short sale.  If it's an approved short sale then you have a better chance of it moving forward...but if it's not, put in an offer and keep looking.  I think the latest statistics state that about 3 of 5 short sales do not go through.  So if you get your heart set on a particular property and stop looking, chances are you are missing out on other homes that you may like just as much.

 

Good luck on your home search!

 

Michelle Risser - Irvine, CA

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Permalink Reply by Beth Halmes on May 15, 2011 at 5:57pm

Oh dear Lord!!  No good news from ANYONE!!:(  Stupid Flagstar!!  ARG!!  We are waiting just one more week to see if something miraculous happens from the crap Flagstar bank...  (One of the realtors even got so pissed that she already backed out. She spent 150 hours on this one!)   What REALLY sucks is that we were going to walk through THREE houses tomorrow morning...  ALL THREE SOLD!!  One last week, one this week, one LAST NIGHT!!:(  Nothing seems to be working out!:(

Anyways, with all the bad news about the possible backup houses, maybe we will hear a miracle about our long standing short sale...??  SOMETHINGS gotta give!!

Thanks to everyone for the advice!!   If anyone has any GOOD NEWS, send it to us PLEASE!!:)  We need some optimism!!:)

Elizabeth

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Permalink Reply by Kelly Magreevy on May 16, 2011 at 6:54pm

Hi,

Had to respond, I embrace the short sale challenges and hope that I can help you and your Realtor so I have some questions for you:

Was your bid market value, under market, over market. Have your Realtor look at the present comps and see if your price still is in value. Then, I would have your Realtor do some research with finding an executive number, the main executive office switchboard..Google is a wonderful tool!  (that is how I got a 10 month B of A short sale approved) and have the agent tell them your story and that you are good buyers wanting to purchase a house that is being neglected (if it is vacant) etc and that you are paying GREAT money for it now compared to what the value may be several months from now. 

Next question: who is the investor..very important to know..you can find this information by asking, researching the original loan papers, the investor is hidden in there somewhere, find out if it is a Fannie Mae or Freddie Mac loan. (I saved one of my short sales by finding out who the investor was, which was local, and contacted him! Got my short sale decline status reversed! 

Got to think outside the box sometimes..and I wish you and your realtor the best of luck in getting the home of your dreams! God Bless!

Kelly Magreevy

 

Curious in seeing if this works out for you so please keep in touch on the outcome!

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Permalink Reply by Beth Halmes on May 16, 2011 at 7:59pm

Thanks so much Kelly!!  I already forwarded your advice to our realtor!:)

Our bid is only $10,000 less than the asking price and very close to market value.  The house has been vacant for 7 months.  Our realtor has told our story to the bank....  and the sellers story (which is very sad!!)...

Our realtor has already called/emailed the president of the bank, etc.

I am not positive as to whom the invester is but I think it is Fannie Mae....  I am not sure how to research it but I am sure that our realtor can figure that one out....

Thank you so so much for your advice!!  I hope we will be able to use it!!

I will let you know the outcome asap!!

Sincerely and God bless,

Beth:)

Kelly Magreevy said:

Hi,

Had to respond, I embrace the short sale challenges and hope that I can help you and your Realtor so I have some questions for you:

Was your bid market value, under market, over market. Have your Realtor look at the present comps and see if your price still is in value. Then, I would have your Realtor do some research with finding an executive number, the main executive office switchboard..Google is a wonderful tool!  (that is how I got a 10 month B of A short sale approved) and have the agent tell them your story and that you are good buyers wanting to purchase a house that is being neglected (if it is vacant) etc and that you are paying GREAT money for it now compared to what the value may be several months from now. 

Next question: who is the investor..very important to know..you can find this information by asking, researching the original loan papers, the investor is hidden in there somewhere, find out if it is a Fannie Mae or Freddie Mac loan. (I saved one of my short sales by finding out who the investor was, which was local, and contacted him! Got my short sale decline status reversed! 

Got to think outside the box sometimes..and I wish you and your realtor the best of luck in getting the home of your dreams! God Bless!

Kelly Magreevy

 

Curious in seeing if this works out for you so please keep in touch on the outcome!

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Permalink Reply by Kelly Magreevy on June 21, 2011 at 7:47am

Beth,

I just sent you a personal message. I am curious  to hear what has happened with your situation. Also, I am about to take my first Flagstar short sale this week. Oh boy, wish me luck and will keep all posted on how it goes. :)

Beth Halmes said:

Thanks so much Kelly!!  I already forwarded your advice to our realtor!:)

Our bid is only $10,000 less than the asking price and very close to market value.  The house has been vacant for 7 months.  Our realtor has told our story to the bank....  and the sellers story (which is very sad!!)...

Our realtor has already called/emailed the president of the bank, etc.

I am not positive as to whom the invester is but I think it is Fannie Mae....  I am not sure how to research it but I am sure that our realtor can figure that one out....

Thank you so so much for your advice!!  I hope we will be able to use it!!

I will let you know the outcome asap!!

Sincerely and God bless,

Beth:)

Kelly Magreevy said:

Hi,

Had to respond, I embrace the short sale challenges and hope that I can help you and your Realtor so I have some questions for you:

Was your bid market value, under market, over market. Have your Realtor look at the present comps and see if your price still is in value. Then, I would have your Realtor do some research with finding an executive number, the main executive office switchboard..Google is a wonderful tool!  (that is how I got a 10 month B of A short sale approved) and have the agent tell them your story and that you are good buyers wanting to purchase a house that is being neglected (if it is vacant) etc and that you are paying GREAT money for it now compared to what the value may be several months from now. 

Next question: who is the investor..very important to know..you can find this information by asking, researching the original loan papers, the investor is hidden in there somewhere, find out if it is a Fannie Mae or Freddie Mac loan. (I saved one of my short sales by finding out who the investor was, which was local, and contacted him! Got my short sale decline status reversed! 

Got to think outside the box sometimes..and I wish you and your realtor the best of luck in getting the home of your dreams! God Bless!

Kelly Magreevy

 

Curious in seeing if this works out for you so please keep in touch on the outcome!

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Permalink Reply by Paola Martinsen on July 11, 2011 at 8:59am

Does anyone have any management contacts for Flagstar?

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Permalink Reply by William Short on October 23, 2011 at 3:56am

Paola,

Here is Flagstar's Short Sale department contact info http://shortsalesuperstars.com/group/flagstarbank. (I have not called this)

Beth,

It does not sound like your realtor had experience to me, I am with a realtor that has closed in on a good number of short sales but this is his first with Flagstar bank. I have been waiting almost 2 months (started late Aug 2011) now but I have gotten a lot further it sounds like. The buyer signed off, and Flagstar performed the BPO a week ago, but we have not heard anything back about the outcome on that. After reading in different places, it looks like because the home we bidded on is close to foreclosure and the owners have a legitimate hardship, Flagstar treats it as top priority, it just does not feel like it when you have to wait months for a new home I guess. I am sorry to hear you waited a year, I suspect I will move on in 3 more months if I cannot get any feedback. Our ratified contract gives us that choice at the end of November. I am going to be keeping track of our short sale on my blog,

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