Short Sale Decline letter from B of A..talked to investor and he didn't decline short sale!

Has this happened to anyone? I think it is a case of the files getting mixed up with someone elses. I contacted the investor who is a local community bank and he is the direct contact for the individual investor. He was really surprised that there was a short sale negotiation and knew exactly what property I was talking about. I asked him if I should tell the buyers' agent that the sale was declined or wait and he told me to wait! Has anyone come across this scenario before? My short sale is closed out of Equator so I am assumming that I have to start all over again, correct?

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I am having heck with one of my BOFA deals we started the process in Aug, we finally got a counter offer on Thursday we agreed to all terms including a seller contribution of 5k, I had emailed everyone on the list asking if we could get the sale date put off as it is set for the 11th of March, they said the request had been denied, I than requested that the approval letter be generated right away so that we could close before the sale date, thankfully the buyer is paying cash as was prepared to close Monday if we had. Instead of getting an approval they declined the short sale! I have been psycho dialing the negotiator she will not pick up the phone or call me back and of course they pulled the deal off equator.  How do I find out who the investor is so I can contact them direct?

Hi Lisa,

Look on the original loan paperwork for the investor. That is what I did with mine and it turned out that the investor was local. In fact, I drive by his office every day! If the loan has been sold, then I would ask your sellers when they were notified when the loan was sold to whom was it sold to. If it is Freddie Mac, I have an EXCELLENT contact person to call that helped me on my last short sale that just closed. 

Let me know if you have any further questions. I just got a listing appointment for sellers that have AFC. Never worked with them. Can anyone give me some advice? Also, has anyone had any success with HAFA? I believe my clients would be perfect candidates for HAFA. I have not done a HAFA short sale before. Thanks!

Hi Kelly, I'm having trouble on a Freddie Mac short sale. Service Link accepted our buyer's offer but when that sent it to Freddie Mac they declined it for the age of delinquency. Now I'm trying to reach Freddie to try to convince them to approve it since we can close by month's end but no one seems to know any more than the servicer. Any ideas what I should do?

 

Becky Baquero

908-418-7020 cell

What do you mean by age of delinquency? Have you resolved this since this posting?

They said the reason it is declined is due to the age of delinquency. The borrow has been in default for 4 years. We received the file about a year ago and we have been working on it but we have had so many different negotiators and servicers and counteroffers that it has been a drawn out process. Now that Service Link has ok'd the current offer Freddie Mac decided to decline it. I cant seem to reach anybody that actually knows anything. The borrower outreach center doesnt have anybody that actually works with the files. I'm looking for a way but right now it's not looking too good.

To Elaine:

Thanks and B of A had a fit when I contacted the investor. The investor was ticked off at B of A that they didn't do their job and the listing agent had to call him to get things rolling again. According to B of A, you cannot call the investor. They are the service provider and are getting paid to service the loan. But when you get bad service and it is doing a dis-service to your client I think that it is your responsibility to contact the investor if you have the information available. Honestly, I believe this would have went to auction back in August, yes, August if I hadn't contacted the investor. On the 15th trustee sale postponement now but it is closing in two weeks maybe sooner...

Elaine Pappas said:

Great thread of info here and congratulations to Kelly!  I'm curious though about the investor part of this.  Is it OK to contact the investor and if not, why?
I am a short sale coordinator for a real estate law firm.  I had a file brought to me by a realtor that typically negotiates her own short sales.  She had received an Equator message of a decline and she was totally aggravated.  So, I went into Equator to begin working on the file when an Equator message came through that they had accidentally declined her submissions.  So, I know that mistake could happen.  If they do not specify why they declined the offer, I would send a message to the sender of the decline message asking what was the reason for the decline.  Hope it all worked out!

Short Sales will be closed out of equator "Short Sale Declined" if timelines are not met.  For example if the submit offer task is pending for more than 14 days or so, or if you don't respond to a counter before it is expired.  These types of declines are completely independent of an investor reviewing the sale.  The investor will never see the offer if you don't have all of your ducks in a row for the BAC negotiator.  Hope that helps.  You will just have to r-initiate the sale right away so you don't lose too much time.

how do you get around the banks to contact the investor on these deals???

read my previous thread..look at the orig loan paperwork...
The original loan on this deal has been sold so many times I cant tell who the investor is, of course BofA wont tell me, I had title try to do a search and they cant tell either. Do you have any other suggestions, does any one have any other suggestions as to how I can find out who the investor is? I have a feeling that the investor on this deal has no idea that we have an all cash offer where the seller is willing to contribute. They gave us a counter through equator which we accepted and 3 hours later we got a denial letter, I dont see how they could have even presented the approved counter to the investor. PLEASE HELP! Thanks so much!!!

Hi Lisa,

Another way I found out is the negotiator let it slip when she was reading the notes in the record. Maybe you can do a little trick mention to the negotiator that so and so is holding the loan correct? And then ask them who is it and this information is something that you really need to know.

I would also try again with the sellers and see if they had received any notification on who holds their loan. Wish you the best of luck.

 

By the way everybody, my short sale is closing THIS FRIDAY!  Yay!

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